Answer to Question #205029 in Macroeconomics for sesi

Question

Use specifically the Solow growth model to discuss the implications of this pandemic on the prospects of long-run economic growth for South Africa.

Answer 1

In the Solow model, a rise in the population growth rate improves aggregate output growth but has no long-term influence on per capita production growth. The steady-state level of per capita output falls as the population growth rate rises.