Some countries experiencing low birthrates are offering women incentives to have children, such as income subsidies and other benefits. does the analysis in this section suggest that a decline in the birthrate is bad for the standard of living?

When considering individual standards of living, the Solow model make suggestions which states that, up to a point, a decline in the birthrate is beneficial to the standard of living because it will cause the break-even investment line flatter which will increase the steady-state capital-labor ratio as well as per capita GDP.

Explanation:

A break-even point refers to a point when investments yield a positive return and this is usually depicted graphically.

The steady state is a point in which output per worker, consumption per worker, and capital per worker are constant.

1. government controls industry through policy

2.government is both a consumer and a producer

4. government can use policy t influence economy

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