Show the destruction of capital, Macroeconomics

Assignment Help:

Q. Show the Destruction of capital?

Destruction of capital, for instance, through a war, works in the opposite way. Marginal product of labor falls, GDP per capita falls and population decreases. This will again result in an increase in the marginal product of labor and GDP per capita return to the 'survival rate'.  

The core point of the model is that population growth would always eliminate the positive effects of technological development and GDP per capita will always return to survival level. This very ‘dismal' growth theory was prominent in the early 1800s and economics to this day is sometimes known as the ‘dismal science'.

Today we know that predictions of the model where incorrect. During rest of the 1800s Europe experienced a growth in GDP per capita. While the population growth was high, it was not nearly sufficient to eliminate the positive effects of technological development.


Related Discussions:- Show the destruction of capital

Internatinal trade, HOW CAN A COUNTRY MAINTAIN EQUILIBRIUM GDP IN AFOREIGN ...

HOW CAN A COUNTRY MAINTAIN EQUILIBRIUM GDP IN AFOREIGN TRADE?

Credit, How credit is created or the creation of credit

How credit is created or the creation of credit

Archery instructors need a license, Now suppose that the archery instructor...

Now suppose that the archery instructors need a license in order to charge for archery lessons. The license is free of charge, but there are only four licenses distributed. Assumin

Same Basket of Goods, assume the cost of a market basket in 2008 is 1717.0....

assume the cost of a market basket in 2008 is 1717.0. Calculate the cost of the same basket of goods and services in 2007. Price index in 2008 was 100 and price index in 2007 was

Define ndp, The following is the information from the national income accou...

The following is the information from the national income accounts for a hypothetical country: GDP

Graph, show on the market for cheese that impact of what happened in the mi...

show on the market for cheese that impact of what happened in the milk market.

Monetary policy , Under what conditions does the text explain that monetary...

Under what conditions does the text explain that monetary policy is neutral? If it is neutral under these conditions, why is it still an important economic policy tool? Your answer

??, If the U.S. government were willing to convert dollars into gold at a f...

If the U.S. government were willing to convert dollars into gold at a fixed price, then dollars would be a. fiat money. b. commodity money. c. bank money. d. both fiat and

Fdi inflows - an appraisal, FDI Inflows - An Appraisal: A comparison o...

FDI Inflows - An Appraisal: A comparison of the magnitude of FDI inflows received by India would appear too small, especially when compared to the inflows received by other co

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd