Question #6
Reading: Reading 6 Economic Growth
PDF File: Reading 6 Economic Growth.pdf
Page: 4
Status: Unattempted
Correct Answer: B
Question
While having lunch with a group of friends, Francine Lenser, CFA, was overheard saying the following: "The recent boom in technological advances should keep the economy growing. Whenever the economy slows, someone will come along with a bold new idea that kick- starts it." Lenser's statement most accurately reflects the:
Answer Choices:
A. neoclassical growth theory
B. endogenous growth theory
C. exogenous growth theory
Explanation
Lenser's statement is a decent layman's description of the endogenous growth theory.
This theory argues that economic growth can continue indefinitely as long as technological
advances are made.