Explain how public policies are impacted by population demographics

Demographic changes can affect GDP growth through several channels. First, lower growth in population directly implies reduced labor input. Second, lower population growth has an indirect potentially negative impact on individual labor supply insofar as it leads to higher tax rates which reduce the incentive to work.

Demographics can include any statistical factors that influence population growth or decline, but several parameters are particularly important: population size, density, age structure, fecundity, mortality, and sex ratio

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