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Unformatted text preview: 4. From the graphs, countries have a high population growth due to higher fertility rates and possibly the factor of life expectancy meaning that it is possible that mortality is decreasing and the fertility rate remains constant actually causing the population to increase. 5. The Solow model suggests that population growth effects capital per capita and therefore income per capita by decreasing both as population grows. The model suggests that rich countries have more capital so in order to follow the model one must conclude t that rich countries have a lower population growth. If this is true countries with a higher population growth will have a lower growth of income per capita. This graph does not clearly show that correlation.-0.01 0.01 0.02 0.03 0.04 0.05-6.00-4.00-2.00 0.00 2.00 4.00 6.00 8.00 Growth rate of real GDP per capita...
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This note was uploaded on 03/01/2009 for the course ECON 114 taught by Professor Cindybenelli during the Winter '08 term at UCSB.
- Winter '08