Suppose in a country, the working-age population doubles due to immigration. However, the country neglects investment in research and development and hence the country's level of technology is stagnant.
Which of the following statements will be true of this economy?
A) The economy will experience steady economic growth.
B) The savings rate will remain stagnant over the years.
C) The economy's output will rise at an increasing rate over time.
D) The economy cannot achieve a sustained growth.
Question 2
Refer to the above figure. The marginal propensity to consume and the marginal propensity to save
A) are 0.75 and 0.25, respectively. B) depend on the level of income.
C) are 0.90 and 0.10, respectively. D) are 0.83 and 0.17, respectively.
Fallow deer at Avon Valley Country Park, Bristol, England
Population Growth and Mobility
Population and Settlement
As the world’s population continues to grow, demands on limited resources for food production
GDP per Capita by Country Group, 1820–2008
Population growth