Hu Tells Leaders China Growth Will Help World Economy Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic stimulus,focused on building low-rent housing,roads,railways and airports.The package also allows tax deductions for fixed assets such as machinery to stimulate investment.Farmers will also benefit from more subsidies."
Hu stated that "China is in itself an important contribution to international financial stability and world economic growth.''
If the fiscal stimulus spending does generate economic growth,we can expect to see

Question

Quizplus · Accepted Answer

If the fiscal stimulus spending generates economic growth in China, it is likely to lead to growth in labor productivity. With more investment in infrastructure and subsidies for farmers, there is potential for increased efficiency and output per worker.