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air pollution causes capital to wear out more rapidly, doubling the rate of depreciation. How would this affect economic growth?

1 Answer

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Answer:

The economic growth will be lower.

Step-by-step explanation:

The rise in pollution and the doubling of the rate of depreciation will affect economic growth adversely. However, rapid wear and tear of capital will cost the person and it will reduce the purchasing power. Thus, lower purchasing power will result in lower economic growth. Moreover, pollution creates three main problems that are reduced labor productivity, rise in health problems, and loss of crop yield. So the reduction in all these factors will also slow down economic growth.

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