Which of the following causes the most problems in countries with low economic growth?

• A. Excessive consumer spending
• B. Rapid technological advancement
• C. High unemployment rates
• D. Low inflation

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which is about identifying the main issue causing problems in countries with low economic growth.
2. Step 2: Recall that low economic growth often leads to insufficient job creation, which can result in high unemployment rates. High unemployment means many people are without work, reducing overall income and demand in the economy.
3. Step 3: Analyze the other options: Excessive consumer spending is less likely in low-growth economies because consumers typically have less income; rapid technological advancement usually promotes growth rather than hinders it; low inflation is generally not a problem but can be a sign of weak demand.
4. Step 4: Recognize that high unemployment rates directly reflect the struggles of an economy with low growth, as businesses are not expanding enough to hire workers, leading to social and economic issues.
5. Step 5: Conclude that among the options, high unemployment rates cause the most problems in countries with low economic growth because they reduce income, increase poverty, and limit economic recovery.