A chief economist argues that government policy should include an additional tax break for research and development expenses. The economist most likely agrees with:
A)
endogenous growth theory.
B)
neoclassical theory.
C)
classical theory.
Why aren’t A and B both legitimate answers? The formula for neoclassical growth includes technology in it, but the textbook section on endogenous growth specifically states that technological progress leads to human better use of labor and therefore is a driving force of growth.