Earlier quoted context omitted.
This is wrong on a profound level. GDP is Gross Domestic Product. In other words, all the goods and services produced. The price level and quantity are deeply tied to demand and for most goods/services, demand is tied to the population. More people means more goods/services sold at a higher quantity and price. Economic growth is largely population growth. The Japanese economic stagnation is largely caused by their po…
More people means more goods/services sold at a higher quantity and price. Can you explain why more people causes price to go up? Quantity will certainly go up, but only in proportion to population, thus having no net effect on GDP per capita.
Sure. As you know, price is the intersection of supply and demand. An increase in a population is, in economic terms, an increase in demand. This will cause the price level to increase.
Over time, supply will increase to match the new demand level, but to what extent and more importantly, the time frame involved, will be dependent on the good/service in question. The supply for some goods and especially most services, isn't easily increased. There is a finite number of lawyers, doctors, etc. to provide services and it take time to train more. Regulations get in the way, licensing, etc. And, of course, there are pressures on the raw materials used to manufacture goods.