3. New growth theory Select the appropriate growth theory used to model each of

Question

3. New growth theory

Select the appropriate growth theory used to model each of the following views.

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3. New growth theory Select the appropriate growth theory used to model each of the following views. New Growth Neoclassical Growth Technology is exogenous to the economic system Endogenous technological advances drive economic growth Countries without abundant resources can still grow with new ideas and technology. According to new growth theory, which of the following promote economic growth? Check all that apply. Devoting more resources to technological development Investing less on education, research, and development, and producing more capital goods instead Destroying available resources to start anew Discouraging workers from trying new ways of doing things

Explanation / Answer

Neo Classical Growth theory is endogenous growth theory model which considers that technological development, investment in education, human development etc leads to increase in output of the economy. While Neo classical growth theory considers techological development as exogenous to the growth process.

Neo classical growth theory will consider technology as exogenous to the economic system.

New Growth theory considers endogenous technological advances drives economic growth.

New Growth theory considers that countries with adundant resources can still grow with new ideas and technology.

Multiple Choice:

Option A. Investing in technological development promotes economic growth in the country.

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