Question

According to the neoclassical growth model, which of the

Q: Answer-According to the neoclassical growth model, which of the following statements is false ?

Neoclassical growth theory is an economic theory that outlines how a steady economic growth rate results from a combination of three driving forcesmdashlabor, capital, and technology. Saving and investment is not the driving factor in neoclassical growth model.

following statements is false ?

A If the population continually grows, while everything else stays the same, then living standards will be lower than they would be if the population was constant.

B If people save and invest a higher proportion of their incomes, while everything else stays the same, then there will be sustained growth.

C If people save and invest a higher proportion of their incomes, while everything else stays the same, living standards could fall.

D A new technology that makes workers more productive, while everything else stays the same, may not lead to sustained growth.

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According to the neoclassical growth model, which of the

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