AP Macroeconomics Question 248: Answer and Explanation

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Question: 248

3. Which of the following would reduce economic growth?

  • A. A decline in investment.
  • B. An increase in immigration from abroad.
  • C. A technological advance.
  • D. An increase in the labor force.
  • E. An increase in the savings rate.

Correct Answer: A


(A) Less investment implies less plant and equipment in the future. That reduces economic growth, whereas choices B through D all enhance growth.