Which describes a factor that limits economic growth?

making investments

developing technology

engaging in trade

having low intemal demand

having low internal demand

Which describes a factor that limits economic growth?

having low internal demand

Explanation:

Economic growth can be defined as the increase in the quantity of goods and services produces in a country over a given time interval. An increase in production is always important for is always a sign of economic growth, however there are factors the limit economic growth. One such factor that will be explained further in this case is a low internal demand.

All the goods and services produced need to be met by equal or even high demand. The demand can either by external or internal. External demand is the need for goods outside one's economy, thus encouraging export while internal demand is the need for goods and services inside one's own country. Internal demand has a greater impact on economic growth than external demand. An increased internal demand usually creates a shortage of the good or service leading to increased prices. The increased prices encourages more producers leading to an increase in output. Increased output leads to economic growth. Thus in this way, an increased internal demand leads to economic growth while having a low internal demand limits economic growth.