Answer to Question #207245 in Macroeconomics for Corleze Joan Botha

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

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.