Over the next 50 years the Japanese population is expected to decline, while the fraction of the population that is retired is expected to increase sharply. What are the implications of these population changes for total output and average living standards in Japan, assuming that average labor productivity continues to grow? What if average labor productivity stagnates?

The way of life is the degree of accessibility of products and ventures that makes the life of each monetary operator increasingly agreeable, more secure, and more beneficial. The way of life can be estimated through yield per individual.  

labor efficiency is the proportion of what a normal labor can create. The normal labor efficiency is yield per individual. It is considered as one of the most significant economic variable.  

The reduction in populace and increment of part of retiree in the absolute populace suggests the quantity of employed will decline. The normal labor profitability is expanding suggests that yield created per individual is expanding. These two factor can either diminish the all out yield or make it consistent or increment it in restricted case.  

On the off chance that all out yield increments or develops with work efficiency, the way of life will rise. This is on the grounds that all out populace is declining. On the off chance that all out yield remains the equivalent, the yield per individual or expectation for everyday comforts will increment as populace diminishes. In the event that all out yield diminishes, the yield per individual or expectation for everyday comforts will diminish as populace diminishes.  

The abatement in populace and increment of part of retiree in the all out populace infers the quantity of utilized will decrease. The diminishing normal work efficiency suggests that yield delivered per individual is diminishing. These two factor diminishes the complete yield.  

In the event that absolute yield diminishes the yield per individual or expectation for everyday comforts will diminish as populace diminishes.

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