A small reduction in a country's growth rate is a concern to policy makers because
A) a small change can have large effects on per capita GDP over time.
B) a reduction usually leads to future reductions until finally the economy stagnates.
C) policy makers focus too much on economic growth and not enough on increasing savings rates.
D) the larger GDP is the better the economic welfare will be in the future.

Question

Quizplus · Accepted Answer

Even a small reduction in growth rate can have significant effects on per capita GDP over time as it affects the accumulation of capital and productivity. This can impact the standard of living and economic welfare of the country.

A Small Reduction in a Country's Growth Rate Is a Concern