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:

Increment in yield by 5%, implies a GDP development rate by 5%, A higher development rate implies an expansion underway from its earlier year.  

A higher GDP development could possibly have an effect on the nations of lower GDP development. It impacting power relies upon the assets that are held by a country. EX; Afghanistan GDP development rate is 22%, with 5.6% and US at - 2.6 %. Here, we can see that these provinces with higher GDP development rate can't settle on any effect on US choices. Except if they have, an asset which is rare in US.  

Yield development by 5% implies an expansion underway; it doesn't really mean an increment in profitability.  

Creation can be expanded in two different ways.  

1) By utilizing more work inputs.  

2) By expanding work efficiency. Utilizing more work units can't impact the way of life.  

Since the compensation rate will be pretty much steady. Be that as it may, an expansion in labor efficiency will build the pay pace of the work, expanding the way of life. So. an expands yield can't ensure an expansion in way of life and it won't develop in the extent of 5%.Since way of life relies upon level of training, future, per-capita buying power equality.