Question

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Preparing for the AP Exam
3. An increase in the aging population in a country
means that
a. its dependency ratio will be higher.
b. its economy will stagnate.
c. there will be a greater need for playgrounds.
d. it will have a minimal effect on the population.
e. it will adversely affect the environment.

Answer 1

B. its economy will stagnate.

Step-by-step explanation:

A rapidly aging population means there are fewer working-age people in the economy. This leads to a supply shortage of qualified workers, making it more difficult for businesses to fill in-demand roles. An economy that cannot fill in-demand occupations faces adverse consequences, including declining productivity, higher labor costs, delayed business expansion, and reduced international competitiveness. In some instances, a supply shortage may push up wages, thereby causing wage inflation and creating a vicious cycle of price/wage spiral.