Suppose in a country, the working-age population doubles due to immigr

Suppose in a country, the working-age population doubles due to immigration. However, the country neglects investment in research and development and hence the country’s level of technology is stagnant.

Which of the following statements will be true of this economy?
A) The economy will experience steady economic growth.
B) The savings rate will remain stagnant over the years.
C) The economy’s output will rise at an increasing rate over time.
D) The economy cannot achieve a sustained growth.

ANSWER

D