00:01
All right, so this problem asks about classical growth theory, neoclassical growth theory, and new growth theory, and discusses or asks us to explain how the growth of real gdp per person would come to a stop with these separate theories.
00:17
So let's start with a, which is the classical growth theory.
00:22
It's called this classical growth theory, and classical growth theory dictates that there are limited resources.
00:30
Limited resources, so our stop or the way that real gdp per person or the growth of that would be detained would be population growth right here.
00:48
So population growth, if there's too much population growth, limited resources would go down and then real gdp per person goes down with that.
01:04
And so for classical growth theory, population growth would be our limiting factor.
01:09
And so for our neoclassical growth theorists, they dictate that so that they are not in the sense that population growth goes up, but they're in the sense that technology, technology, like lack thereof technology, would be the limiting.
01:37
Factor for gdp growth.
01:42
This is because if technology doesn't increase, then people cannot get more efficient...