AP Macroeconomics Question 248: Answer and Explanation
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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.