CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

The view that real GDP growth is temporary and that when real GDP per person rises above the subsistence level, a population explosion eventually brings real GDP per person back to the subsistence level is ______.
A. classical growth theory.
B. neoclassical growth theory.
C. endogenous growth theory.
Explanation: Contrary to the assumption of the classical theory, the historical evidence is that population growth rate is not tightly linked to income per person, and population growth does not drive incomes back down to subsistence levels.

User Contributed Comments 0

You need to log in first to add your comment.