Which of the following did NOT result in economic growth?

• A. Advancements in technology
• B. An increase in the labor force
• C. A decrease in investment spending
• D. Improvement in education and skills

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of economic growth, which is the increase in the production of goods and services in an economy over time, often measured by the growth of real GDP.
2. Step 2: Recognize that economic growth is typically driven by factors that increase the productive capacity of the economy, such as advancements in technology, an increase in the labor force, and improvements in education and skills.
3. Step 3: Analyze each option to see if it contributes to increasing productive capacity: advancements in technology improve efficiency; an increase in the labor force provides more workers; improvements in education and skills enhance worker productivity.
4. Step 4: Identify that a decrease in investment spending reduces the amount of capital available for production, which can slow down or reduce economic growth rather than promote it.
5. Step 5: Conclude that among the options, a decrease in investment spending does NOT result in economic growth because it limits the economy's ability to expand its productive resources.