Classical Growth Theory is an economic framework that explains how a nation's economy grows over time. It emphasizes the role of factors like labor, capital, and land in producing goods and services. According to this theory, as these inputs increase, so does the output, leading to economic growth. Key figures associated with this theory include Adam Smith and David Ricardo. The theory also suggests that growth will eventually reach a steady state due to diminishing returns on capital and labor. This means that as more resources are added, the additional output gained from each unit will decrease, stabilizing economic growth in the long run.