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Is population growth a problem?
Quick population growth is a main cause of poverty and arises where population growth go beyond the rate of economic growth.
Standards of living decreasing and greater demands are placed upon restricted resources.
Quick population growth has short and long run both impacts:
• Into the short run falling per capita income implies less education to develop human capital- a main factor in increasing productivity
• Into the long run more workers are obtainable to assist raise GDP along with a lead time of 15+ years Implications: decrease family size by education, family planning, tax incentives legislation for example, China one child programme.
How static multiplier can be shown diagramatcally
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