Government Actions and Economic Growth Impacts

Steps:

• Define economic growth as increase in GDP from factors like labor, capital, productivity.
• Evaluate each option's effect on these factors to prevent growth decline.
• Identify restrictive actions that limit investment or resources versus expansive ones.
• Select the option that constrains rather than supports growth drivers.

Why A is correct:

• Controls on bank lending reduce credit availability, limiting investment in capital (per Solow growth model, where capital accumulation drives output).

Why the others are wrong:

• B increases labor supply via immigration, expanding workforce and potential output.
• C lowers input costs through imports, boosting productivity and firm efficiency.
• D enhances human capital via skills, raising long-term productivity and growth rates.

Final answer: A