Question

If the world s population is growing by 1 percent a year, (a) How fast does production have to increase to keep living standards from falling? (b) Will living standards rise, fall, or stay the same if the workforce and productivity (MPP) also increase by 1 percent each year?

Answer 1

Explanation:

Answer- Economic growth is a long-run process that occurs as an economy’s potential output increases. Changes in real GDP from quarter to quarter or even from year to year are short-run fluctuations that occur as aggregate demand and short-run aggregate supply change. The level of productivity is the single most important determinant of a country’s standard of...