Question

2. Consider a nation in which the volume of goods and services is growing by 4 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 4 percent growth on the nation’s living standards? Will these also necessarily grow by 4 percent per year, given population growth? Why or why not? LO2

Answer 1

If the rate of growth which is 4 percent of the country is considered high, then because of this that nation would be getting more influence in the international marketplace.

The likely impact of this high growth rate would be the dominance over production of goods and services. That nation is going to increase it's exports and business at a faster rate . Also, it would penetrate and strengthen its business to new places .

Rate is 4 percent that means the output is also increasing at a high 4 percent which is above the population growth , country's living standards are also increasing with the same level.

With all the increase in different areas like business, global market dominance, and advancement of living standards, that also means that the political influence would increase in the global organizations and institutions.