What did Schumpeter believe about economic progress?
It is linear
It is cyclical
It is random
It is static
Answer
Schumpeter believed economic progress is cyclical. He argued that capitalism undergoes periods of innovation and expansion, followed by recessions and depressions. During innovation, new technologies and industries emerge, leading to economic growth. However, as these industries mature, competition intensifies, profits decline, and the economy enters a recession. This cycle repeats itself, with each innovation triggering a new period of growth and decline.
Schumpeterian Secrets: Unveiling the Mind of an Economic Pioneer
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