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MANAGERIAL ECONOMICS
LECTURER: ENCIK
MOHAMED HISHAM BIN
HANIFA
JOANNE OOI JHO YEN CEB140078
LAU SZE CHING CEB140054
YIP SIN YEE
CEB140141
LAU SZE
CHING
Deputy
Governor,
Monetary
Autority of
Singapore
JOANNE OOI
CFO of
International
Monetary
Fund
Organization
Discuss
the
economic
growth theories. Which of
them do you most agree
with? Is economic growth
always good?
Classical Growth
Theory
ISSUES:
All economies have access to the same technologies
and capital is free to roam the globe, seeking the
highest available real interest rate.
The theory argues that economic growth will not
continue unless there continues to be advances in
technology.
Is economic growth
always good?
Yes, if it is in accordance to New
Growth Theory which emphasize on
innovation and creativity to boost the
economy provided without harming
the environment or affecting the
stakeholders.
A central proposition of New Growth
theory is that, unlike land and
capital, innovation is not subject to
diminishing returns.