Question

Consider a nation in which the volume of goods and services is growing by 5 percent per year. What is the likely impact of this high rate of growth on the power and influence of its government relative to other countries experiencing slower rates of growth? What about the effect of this 5 percent growth on the nation’s living standards? Will these also necessarily grow by 5 percent per year, given population growth? Why or why not?

Answer 1

Answer :

Impact of the high rate of growth on the nation.

- More employment, or fall in unemployment because of more individuals employed to produce for the expansion in production.

- More GDP (Gross domestic Products) in the nation, giving nation more economic stability.

- Better living standards because of more varities in goods being produced.

- However demand pull inflation may happen because of more goods/services being consumed.

The high rate of growth is likely to affect the power and influence of the nation's government relative to other nations experiencing slower rates of growth.

- More economic stability giving political power for the nation for bargaining, import and export choices and international trade.

- Higher negotiation power for trade and different deals

- Capacity to make sure about wise investments and FDI, and hot moeny streams to the economic stability which will add to financial stablity.

The 5% growth is likely to affect the nation's living standards.

- As more employment happens, higher wages will empower these families to appreciate better living standards.

- Improved living standards because of more goods and services being open, without having the requirement for imports.

- More skills will empower them to make sure about better jobs.

Economic growth affect population growth.

- Birth rates will increase as less beyond words birth.

- Maturing population will rise pass on to better clinical offices.

- More goods and services produced will mean more healthcare and better nourishments being produced.

- This will add to healthly ways of life.

In this way by and large population will rise.

Will these also necessarily grow by 5 percent per year, given population growth? Why or why not?

Yes, due to previously mentioned

No ; Since it relies upon the sort and qaulity of goods produced, and who devours the great.

- On the off chance that great qaulity goods are completely exported, domestic consumers will experience the ill effects of modest other options.

- On the off chance that goods like weapons are produced that add to higher GDP, at that point there is no postive impact for the economy, more likely for external costs.

- In the event that lone modest goods are produced with helpless qaulity, impossible for better living standards to emerge.

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