Question

Decreases in the level of political stability in a country tend to: A. decrease per capita GDP. B. increase per capita GDP at lower levels of stability, but decrease per capita GDP at higher levels of stability. C. increase per capita GDP. D. have no impact on per capita GDP.

Answer 1

A. decrease per capita GDP.

Step-by-step explanation:

• Political instability in the economy can lead to a decline in the macro-economic factors and a fiscal define ton the part of the government. As the policies in place will be inadequate to meet the demands of the country.

• As there will be no economic growth and no development hence the per capita will also fall. The standard of living will also fall and inequality will also