Classical Growth Theory

Filed Under » ,
Dictionary Says

Definition of 'Classical Growth Theory'

A theory on economic growth that argues that economic growth will end because of an increasing population and limited resources. Classical Growth Theory economists believed that temporary increases in real GDP per person would cause a population explosion that would consequently decrease real GDP.
Investopedia Says

Investopedia explains 'Classical Growth Theory'

Economists behind this theory developed an idea of a "subsistence level" to model the theory. They believed that if real GDP rose above this subsistence level of income that it would cause the population to increase and bring real GDP back down to the subsitence level. It was sort of like a equilibrium level that real GDP would always revert to in this theory. Alternatively, if the real GDP fell below this subsistence level, parts of the population would die off and real income would rise back to the subsistence level.
Search results for

'Classical Growth Theory'

  • What Is the Quantity Theory of Money?

    http://www.investopedia.com/articles/05/010705.asp
    ... was considered orthodox among 17th century classical economists and ... apply the principles
    of the theory to economies where money growth targets were ...
  • Macroeconomics: Schools Of Thought | Investopedia

    http://www.investopedia.com/university/macroeconomics/macroeconomics1.asp
    ... is no unemployment, growth depends upon the supply of production factors. (Other
    economists built on Smith’s work to solidify classical economic theory. ...
  • Understanding Supply-Side Economics

    http://www.investopedia.com/articles/05/011805.asp
    ... to descend ahead of deflationary pressures (lower CPI growth) in 1998 ... are so utterly
    disagree with the theory that they ... to an updated view of classical economics ...
  • Giants Of Finance: John Maynard Keynes

    http://www.investopedia.com/articles/economics/09/john-maynard-keynes-keynesian.asp
    ... government budgets and low taxes (classical economic virtues ... show that savings hurt
    economic growth - even though ... less real-world application a theory will have ...
  • Monetarism: Printing Money To Curb Inflation

    http://www.investopedia.com/articles/economics/08/monetarism.asp
    ... Theory of Money The approach of classical economists toward ... more, read What Is The
    Quantity Theory Of Money ... was to correspond to the natural growth rate of GDP. ...
  • What Causes Bubbles? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/What-Causes-Bubbles.aspx
    ... However, classical liberal economists think the Fed is ... Eavis in a 2004 article,
    "credit growth was rampant ... In his famous book, "The General Theory of Employment ...
  • CFA Level 1 Study Guide - Macroeconomics - Economic Theories ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/economic-theories.asp
    ... Tradeoff Theory of Leverage; 11.28 Signaling Prospects Through Financing Decisions;
    11.29 Degree of Total Leverage; 11.30 Dividend Theories; 11.31 Dividend Growth ...
  • Micron Enjoying A Break In The Clouds

    http://stocks.investopedia.com/stock-analysis/2010/Micron-Enjoying-A-Break-In-The-Clouds-MU-AAPL-RIMM-HPQ-SNDK-AMAT-KLAC0630.aspx
    ... The key, then, lies in anticipating the changing tides and abandoning a classical
    "buy and ... It is not often that you see that sort of growth in companies with ...
  • Three Middle Eastern Jewels

    http://stocks.investopedia.com/stock-analysis/2010/Three-Middle-Eastern-Jewels-EIS-TUR-EGPT-MES-GULF0409.aspx
    ... Egypt's real economic growth averaged 4.9% annually since 2000, and 6.3% for ... Stock
    Analysis By Email. Turkey Blurring the line between classical definitions of ...
  • How To Create A Modern Fixed-Income Portfolio

    http://www.investopedia.com/articles/bonds/07/fiportfolio.asp
    ... To Stay On Track, Modern Portfolio Theory: An Overview ... poised to participate in global
    growth through investments ... mean going outside the classical style boxes ...

Related Articles

Partner Links