Question

The classical growth theory is that real GDP per person​ ______. A. grows foreverB. is constant and does not change C. only temporarily rises and then returns to the subsistence level D. increases as the population grows

Answer 1

C. only temporarily rises and then returns to the subsistence level

Step-by-step explanation:

The reasoning behind this idea:

Once the GDP per person increases, there will be an increase in population as now is more affordable to have kids as people is richer

Then, as more people is born the GDP per person goes back into subsistence level.

The problem with this theory is that it does not account for the increase in productivity which generates the GDP per person to increase is permanent hence; the population will increase until productivity allowed and mantain that level. Like occur with the industrial revolution when we move from 1 billon to 7 billion and with an increase in GDP