Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 2 of 18

Neoclassical growth theory says an economy reaches a steady state rate of growth when:

I. the output-to-capital ratio is constant.
II. the capital-to-labor ratio is constant.
III. capital per worker and output per worker grow at the same rate.

User Contributed Comments 0

You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

Learning Outcome Statements

compare classical growth theory, neoclassical growth theory, and endogenous growth theory;

explain and evaluate convergence hypotheses;

describe the economic rationale for governments to provide incentives to private investment in technology and knowledge;

CFA® 2025 Level II Curriculum, Volume 1, Module 9.