Question

explain how the GDP of a country depends on the population of the country​

Answer 1

Answer:

Is GDP affected by population growth or population growth rate? Why?

There is a clear positive link :

When the populaties grows, labour increases. Equilibrium labour will also be higher.

Given the production function:

Y = (AL)^alpha.K^(1-alpha)

We see that an increase in L (=labour) will lead to an increase of Y (=GDP).

For a more intuitive reasoning:

If there are more people to produce stuff, we will produce more stuff simply because we have more workers.

Note:

This does not mean we will get better on an individual basis. It just means that larger countries will produce more purely based on their population. As an example:

GDP of India is about 5,2 times the GDP of Belgium. But population of India is about 118 times the population of Belgium (2017).

So if your population grows, your GDP will grow but it will not signify an improvement of living.

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Answer 2

Answer:

In economics, labour is a factor of production and with an increase in the labour force, due to population growth, the total output may increase causing the GDP to increase. The wages for labour may also decrease due to an abundance of labour, this would allow the cost of production to decrease. Thus the producer may choose to employ more people and increase production.

In economics, labour is a factor of production and with an increase in the labour force, due to population growth, the total output may increase causing the GDP to increase. The wages for labour may also decrease due to an abundance of labour, this would allow the cost of production to decrease. Thus the producer may choose to employ more people and increase production.However, the increase in GDP would be a long run effect as people are not considered part of the labour force until the age of approximately 15. The economy may not have enough available jobs for the population, which would cause the unemployment rate to increase. Meaning an increase in population does not always result in growth in GDP.