Answer to Question #138831 in Macroeconomics for chan

Question

State whether each of following statements is “True” or “False” (Explain why if the
statement is false.)

When the GDP growth rate is 3% and its population growth is 4%, its GDP
per capita is higher

Answer 1

False

Population growth is greater than the growth rate of GDP.

Rapid population growth lowers the growth of savings and savings, increases labor force growth and makes it difficult to use it, lowers the quality of the labor force by lowering the level of spending on education and health care, weakens technological innovation, reduces resources per person, and ultimately slows down GDP growth by per capita.