Question

A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. Last year, its residents decided to produce no capital goods. It has experienced no growth in its population or in the amounts of other productive resources during the past year. In addition, the nation's technology and resource productivity have remained unchanged during the past year. Will the nation's economic growth rate for the current year be negative, zero, or positive?

Short answer

The nation's economic growth rate for the current year be negative.

Step-by-step solution

introduction 

The rate at which the real GDP of a nation develops over time from one year to another is called the economic growth rate.

explanation

There would have been a decrease in the worth of accessible capital products in the nation and in this way the real GDP would have diminished. The capital merchandise of the nation wears out with time and the nation has not created any capital products during the earlier year where different elements stay unaltered the financial development rate for the ongoing year will be negative.