Economics · Demographic Dividend
Which of the following correctly explains the 'second demographic dividend'?
- 1Accumulation of capital and savings by an ageing cohort preparing for retirement, leading to higher investment and productivity✓
- 2A rise in per capita income due to a falling youth dependency ratio alone
- 3Increased labour force participation as fertility rates decline in the early phases of demographic transition
- 4Permanent increase in GDP growth rates sustained throughout demographic transition
Correct answer
Accumulation of capital and savings by an ageing cohort preparing for retirement, leading to higher investment and productivity
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