What is the effect of population growth on GDP?

Answer 1

There is no definite answer, but it may cause an increase in GDP due to an increase in the labour force.

In economics, labor is a factor of production; therefore, if the labor force increases due to population growth, the overall output may increase as well, increasing GDP; if labor is abundant, labor wages may also decrease, allowing the cost of production to decrease, leading the producer to decide to hire more people and increase production.

An increase in population does not always translate into growth in GDP, as people are not considered to be in the labor force until they are about fifteen years old. In addition, there may not be enough jobs available to meet the demand from the growing population, which would lead to an increase in the unemployment rate.

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Answer 2

Population growth can have both positive and negative effects on GDP. In the short term, population growth can stimulate economic activity by increasing consumption and demand for goods and services. However, in the long term, if population growth outpaces economic growth, it can strain resources, lead to environmental degradation, and reduce per capita GDP due to diminishing returns to capital. Additionally, the impact of population growth on GDP depends on factors such as the age structure of the population, education levels, and government policies.

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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

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