Explanation

This question refers to the Classical growth theory (specifically the Malthusian model), which posits that:

• Technological progress temporarily increases output per capita
• However, this leads to population growth as people have more children
• Eventually, population growth catches up with output growth
• The result is no long-term increase in per capita output - people return to subsistence level

Why not the other options:

• Neoclassical model: Predicts convergence and sustained growth through capital accumulation
• Endogenous growth model: Emphasizes that technological progress can lead to sustained growth through human capital and innovation

Key insight: The classical model is pessimistic about long-term growth, suggesting that technological gains are ultimately consumed by population growth rather than raising living standards.