**Core Concept:** The concept being tested here is the calculation of population growth rate and its classification based on the rate of increase.

**Why the Correct Answer is Right:** The correct answer is **D.** Because the annual growth rate of a population is given as 1.5-2%, which is considered high. In demography, population growth rates are typically classified as follows:

1. **Low growth rate (less than 0.5%):** This indicates a slow population increase and is usually associated with stable populations or populations in decline due to high mortality rates or low fertility rates.
2. **Moderate growth rate (between 0.5-2%):** This indicates a moderate population increase and is typically seen in populations that have balanced fertility rates and low mortality rates.
3. **High growth rate (more than 2%):** This indicates a rapid population increase and is usually associated with populations that have high fertility rates and low mortality rates.

**Why Each Wrong Option is Incorrect:**

A. **Annual growth rate of 0.5%:** This option represents a low growth rate, not the high growth rate mentioned in the question.
B. **Annual growth rate of 10%:** This option represents an extremely high growth rate, which is not what the question is asking about.
C. **Annual growth rate of 1.5%:** This option is close to the correct rate, but still falls under moderate growth rate category, not the high growth rate category.
D. **Annual growth rate of 2%:** This option is the correct rate mentioned in the question, representing a high growth rate.

**Clinical Pearl:** Understanding population growth rates is crucial for public health planning, resource allocation, and demographic forecasting. High growth rates can lead to several challenges, including increased demand for resources, infrastructure development, and healthcare services. These challenges can be addressed through effective public health policies, urban planning, and social programs.