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Use the simplest version of the Malthusian model with just land and labor inputs. 1. What effect would a decrease in TFP have on the
Use the simplest version of the Malthusian model with just land and labor inputs.
1. What effect would a decrease in TFP have on the equilibrium standard of living, and population, both in the short-run and the long-run?
2. What does the Malthus model predict for short-run and long-run output and population differences between countries that differ in geography? (Say one country has infertile land.)
3. How do the short-run predictions of the model change if the birth rate was an increasing function of the level of consumption?
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