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Answer: increases.
## Explanation The divergence **increases** when economic growth from non-listed firms rises. **Reasoning:** - Listed companies represent only a portion of the overall economy - When non-listed firms grow faster, they capture more of the total economic growth - This creates a gap between overall GDP growth and the earnings growth of listed companies - The stock market's performance reflects only the listed portion of the economy **Example:** If private companies, startups, or state-owned enterprises experience strong growth while listed companies grow more slowly, the stock market will underperform the overall economy.
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All else being equal, as economic growth from firms not listed on the stock market increases, divergence between total economic growth and the earnings growth of listed companies:
A
decreases.
B
remains unchanged.
C
increases.