Answer: increases.

## Explanation Immigration typically increases economic growth in developed countries through several channels: - **Labor force expansion**: Immigrants increase the size of the labor force, contributing to higher potential output - **Skill diversity**: Immigrants often bring diverse skills and expertise that complement the existing workforce - **Entrepreneurship**: Immigrants are more likely to start businesses, creating jobs and innovation - **Demand stimulation**: Increased population leads to higher consumption and investment - **Demographic benefits**: Immigration can help offset aging populations and declining birth rates in developed countries While there can be short-term adjustment costs, the long-term effect of immigration on economic growth in developed countries is generally positive.

Author: LeetQuiz Editorial Team