Q. 2- For Critical Thinking In principle, how could a nation... [FREE SOLUTION]

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Economics
Economics Today
Chapter 18
Q. 2- For Critical Thinking

Chapter 18: Q. 2- For Critical Thinking (page 410)

In principle, how could a nation maintain a relatively high rate of economic growth even if it also has a relatively high rate of population growth?

Short Answer

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Companies with more cash can raise capital, enhance their technology, expand, and grow. All of these efforts help to increase productivity, which leads to increased economic growth.

Step by step solution

Introduction.

An imbalance between births and deaths is the primary (and perhaps most obvious) cause of population growth.

Theory of economic Growth.

According to the theory of economic growth, educated human capital can help a country's growth fortunes turn around. The difference between GDP growth and population growth is the pace of economic growth.

This equation looks to be slowing growth in a country with a shrinking population. 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.

Maintain a relatively high rate of economic growth.

In this respect, if country SK's population declines or migrates to other countries, the country's economic growth will decline. These people raise the country's overall productivity, and as a result, the country's long-term real GDP growth will be zero.