Business I / The Pre-industrial Economy
Practice question · Fill in the blanks

Complete the Malthusian logic.

In the Malthusian model, productivity gains raise income temporarily, but ______ growth absorbs the surplus, returning income to ______.

Word bank: population · subsistence · trade · inflation

Hints
  1. The loop has two steps: population absorbs, income reverts.
  2. That is why progress produced more people rather than richer ones.
Show the answer

In the Malthusian model, productivity gains raise income temporarily, but population growth absorbs the surplus, returning income to subsistence.

Why

Population absorbs, subsistence returns, the two-step loop that held for millennia.

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