Q. 1- For Critical Thinking Why does the fact that populatio... [FREE SOLUTION]

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Economics
Economics Today
Chapter 18
Q. 1- For Critical Thinking

Chapter 18: Q. 1- For Critical Thinking (page 410)

Why does the fact that population growth has ambiguous effects on real GDP growth complicate the Chinese government's efforts to accomplish its growth objective?

Short Answer

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Most of China's rapid economic growth is attributed to large-scale capital investment (supported by significant domestic savings and foreign investment) and rapid productivity growth, according to economists.

Step by step solution

Introduction.

According to the theory of economic growth, educated human capital can help a country's growth fortunes turn around. A country with a shrinking population appears to be slowing down.

This is not the case, since evidence from the country of SK shows that the amount of income spent on education by the population is a true factor of progress.

Chinese Government's efforts to accomplish its growth objective.

Economists believe For the most part, China's rapid economic growth has been fueled by large-scale capital investment (backed by large domestic savings and foreign investment) and rapid productivity growth. Both of these aspects appear to have functioned together.

Overall Productivity of nation.

In this sense, if country RU permits individuals from any other country, especially one that is productive, its own economic growth will increase. These individuals will boost the country's total output.