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Monday, July 5, 2010

Economy must grow 2% But Population only grows 1%

" Consider that the economy needs to grow roughly 2% per year just to keep unemployment from rising."

Why?
We hear this a lot.
What is the explanation?

Population is growing at less than 1% a year. Why would the economy need to grow 2% to accomodate a 1% increase in the population?

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