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Population growth can:a.promote economic growth as long as policies based on nominal GDP per capita are in placeb.promote economic growth as long as policies based on nominal GDP growth are in placec.promote economic growth as long as policies based on real GDP per capita are in placed.promote economic growth as long as policies based on real GDP growth are in place

Question

Population growth can:a.promote economic growth as long as policies based on nominal GDP per capita are in placeb.promote economic growth as long as policies based on nominal GDP growth are in placec.promote economic growth as long as policies based on real GDP per capita are in placed.promote economic growth as long as policies based on real GDP growth are in place

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Solution

The correct answer is c. promote economic growth as long as policies based on real GDP per capita are in place.

Population growth can potentially promote economic growth if it leads to an increase in the labor force, which can boost production and consumption. However, for this to translate into improved living standards, the growth in real GDP (which adjusts for inflation) must outpace the growth in population. This is reflected in the real GDP per capita, which is a measure of the average economic output per person.

Policies that focus on increasing real GDP per capita would aim to ensure that economic growth benefits all members of society, not just a select few. This could involve measures to improve education and skills, promote technological innovation, or create a favorable business environment.

The other options (a, b, and d) are not as accurate. Nominal GDP does not take into account the effects of inflation, so policies based on nominal GDP per capita or growth may not reflect the true economic well-being of the population. Real GDP growth, while important, does not account for population size, so it may not accurately reflect living standards if population is growing rapidly.

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