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This will encourage international trade which will increase capital accumulation and economic growth. . Population Theory (Thomas Malthus) Robert Malthus put forward population theory which emphasize that population growth tends to increase faster than growth in food production. This means that there are natural limitations to economic growth, because population growth can reuce societal welfare due to scarcity of resources.

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Law of Decreasing Rates of Return (David Ricardo) Ricardo also propose the concept of the law of decreasing rates of return, which holds that when additional inputs, labor or land) are introduce into production, the resulting additional rate of Australia Telegram Number Data production will tend to decrease. This has the implication that long-term economic growth will experience a slowdown because it will become increasingly difficult to achieve high growth rates. . Subsistence Wage Level (David Ricardo) Ricardo also develope the concept of subsistence wage levels.

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Namely wage levels sufficient to maintain workers and their families at a basic level of living. This concept is relate to Malthusian population theory, as it is assume that wages will tend to move towards subsistence levels due to population growth. This Australia WhatsApp Number List classical economic growth theory provides the basis for understanding the factors that influence economic growth in the classical economic view. Although these theories have evolve and been replace by more complex models, these classic ideas still provide important insights into the basic aspects of economic growth.

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