Question

how low level of national product contributes for poverty?

Answer 1

Answer:

It makes sense that poverty rates are related to the overall health of the economy. As the economy grows, so do opportunities for employment and income growth. Stronger labor markets and higher income levels tend to help those families living in poverty move above the poverty threshold.Explaining the impact of lower GDP on common man, senior economist Nagraj said that lower GDP means a proportionate decline in per capita income. Further, given high inequality in the economy, it is very likely that the poor will suffer more from the decline in the GDP growth rate than the rich.