The new growth theory attempts to explain
A)the rate of population growth within a country.
B)the rate of capital accumulation within a country.
C)the factors that determine the size of the Solow residual.
D) why there are diminishing returns to capital.

Question

Quizplus · Accepted Answer

The new growth theory focuses on understanding the factors that contribute to technological progress and innovation, which are often captured by the Solow residual in economic models.

The New Growth Theory Attempts to Explain