Question:
Which of the following would reduce economic growth?
(1) A decline in investment
(2) An increase in number of immigrants from abroad
(3) A technological advance
(4) An increase in the labour force
(5) An increase in the savings rate
Correct Answer:
(1)
Answer Explanation:
Economic growth relies heavily on capital accumulation. A decline in investment means fewer new factories, machinery, and infrastructure are built, which slows down the expansion of the economy’s productive capacity over time.
Topic: Economic Growth Year: 2022
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