Answer to Question #206608 in Macroeconomics for Koketso

Question

In an essay, Use specifically the Solow growth model to discuss the implications of this pandemic on the prospects of longrun economic growth for South Africa.

Answer 1

A higher population growth rate boosts aggregate output growth but has no long-term impact on per capita production growth in the Solow model. As the population growth rate increases, the steady-state level of per capita output decreases.