Hi,
I am trying to understand what happens when an economy reaches saturation.
By saturation, I mean the following:
1. The population has reached to an optimum level and no longer growing or declining.
2. The demand and supply forces of production have matched- consumption trends may change but consumption levels remain unchanged.
3. All opportunities to improve output and reduce costs/input have been exhausted (no more productivity growth is possible).
Is such a scenario possible, at least theoretically? What can be done to get such an economy growing, barring growth in exports?
Thanks,