How do economic growth rates affect a nation's standard of ...

[Metfan725]

How do economic growth rates affect a nation's standard of living?
 
  What will be an ideal response?

Question 2

Which of the following is one explanation as to why the aggregate demand curve slopes downward?
 
  A) Decreases in the price level raise the interest rate and increase consumption spending.
  B) Decreases in the price level raise the interest rate and increase investment spending.
  C) Decreases in the price level raise real wealth and increase consumption spending.
  D) Decreases in the U.S. price level relative to the price level in other countries lower net exports.

[Joy Chen]

Answer to Question 1

The speed at which an economy grows determines the standard of living of its people. If an economy grows too slowly, then standards of living can decline. If a country is already poor, then slow growth can fail to raise standards of living of its citizens. This can result in people living in poverty, poor health, having poor nutrition, low life expectancy, high infant mortality, and an overall poor quality of life. On the other hand, more rapid rates of growth can improve standards of living. This can lift people out of poverty, raise life expectancy, improve health, eliminate hunger, and improve the general quality of life.

Answer to Question 2

C

[Metfan725]

Correct answers!

[Joy Chen]

Great! Please up vote