Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

South Africa has made efforts to increase the rate of economic growth by attracting foreign direct investment (FDI). What can be deduced from this diagram about how FDI and GDP growth were related between 2008 and 2018?

  • AThe relationship between level of FDI and GDP growth is generally weak.
  • BIncreases in FDI are in line with improvements in GDP growth.
  • CLowering FDI is linked to stable GDP growth.
  • DNegative GDP growth is linked to a lack of inflows of FDI.

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