14. Consider a nation in which the volume of goods and services is growing by 5 percent per year. What is the effect of this 5 percent growth on the nation's living standards? Will these also necessarily grow by 5 percent per year, given population growth? Why or why not? If a country's living standards are increasing at 5%, this implies that output is (increasing, decreasing ) at a rate of 5% above population growth. Modern economic growth means that output per (P ) increases. That is, the rate of output growth exceeds the rate of population growth. If this rate of growth is (gIcater., smaller ) than the rate of population growth, the standards of living will improve.
14. Consider a nation in which the volume of goods and services is growing by 5 percent per year. What is the effect of this 5 percent growth on the nation's living standards? Will these also necessarily grow by 5 percent per year, given population growth? Why or why not? If a country's living standards are increasing at 5%, this implies that output is (increasing, decreasing ) at a rate of 5% above population growth. Modern economic growth means that output per (P ) increases. That is, the rate of output growth exceeds the rate of population growth. If this rate of growth is (gIcater., smaller ) than the rate of population growth, the standards of living will improve.
Chapter1: Making Economics Decisions
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![14. Consider a nation in which the volume of goods and services is growing by 5 percent per year. What
is the effect of this 5 percent growth on the nation's living standards? Will these also necessarily grow
by 5 percent per year, given population growth? Why or why not?
If a country's living standards are increasing at 5%, this implies that output is (increasing, decreasing
) at a rate of 5% above population growth. Modern economic growth means that output per
(p ) increases. That is, the rate of output growth exceeds the rate of population growth. If this
rate of growth is „greater., smaller ) than the rate of population growth, the standards of living will
improve.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e89054c-f9da-4bc0-9c93-7b2bcf79942a%2F0a836711-7fe4-424d-bd12-ec24e93a5589%2Fnxr51l_processed.png&w=3840&q=75)
Transcribed Image Text:14. Consider a nation in which the volume of goods and services is growing by 5 percent per year. What
is the effect of this 5 percent growth on the nation's living standards? Will these also necessarily grow
by 5 percent per year, given population growth? Why or why not?
If a country's living standards are increasing at 5%, this implies that output is (increasing, decreasing
) at a rate of 5% above population growth. Modern economic growth means that output per
(p ) increases. That is, the rate of output growth exceeds the rate of population growth. If this
rate of growth is „greater., smaller ) than the rate of population growth, the standards of living will
improve.
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