What are the basic arguments of the classical growth theory?
What will be an ideal response?
The classical growth theory originated during the late 18th century. Although proposed by many leading economists of the time, it has most often associated with Malthus. The classical theory states that economic growth will be temporary. The reason why the growth is temporary is because any economic growth will lead to a population explosion. The growth in population increases labor hours, which lead to a reduction in capital per labor hour. Productivity declines until real GDP per person falls to the subsistence level where life is just sustained. At this point, economic growth ceases.
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A) More buyers in the market B) Collusion among the buyers C) More elastic supply D) Rightward shift in the MV curve
A market is a group of buyers and sellers of a particular good or service
a. True b. False Indicate whether the statement is true or false
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A currency that is pegged to another currency is usually changed on a supply-and-demand basis.
a. true b. false