Which of the following would increase a country's productive capacity? A rise in unemployment Improved education and training A decrease in government spending A lower savings rate

## Step 1<br />Productive capacity refers to the maximum output that an economy can produce using its available resources. These resources include labor, capital, and technology. <br /><br />## Step 2<br />A rise in unemployment would not increase a country's productive capacity. In fact, it would decrease it because fewer people are contributing to the production process.<br /><br />## Step 3<br />Improved education and training would increase a country's productive capacity. This is because when the workforce is better educated and trained, they can contribute more effectively to the production process. This leads to increased productivity and, consequently, an increase in the productive capacity of the country.<br /><br />## Step 4<br />A decrease in government spending does not directly affect a country's productive capacity. While government spending can influence economic activity, it does not directly determine the productive capacity of a country.<br /><br />## Step 5<br />A lower savings rate would not increase a country's productive capacity. In fact, it would decrease it because less savings mean less capital available for investment in productive activities.