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
Section: Chapter Questions
Problem 1QTC
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