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.''
Www)bloomberg.com 11/15/2008
If the fiscal stimulus spending does generate economic growth, we can expect to see

Question

Quizplus · Accepted Answer

If the fiscal stimulus spending is effective, it can lead to increased economic activity and investment, which can enhance labor productivity as businesses become more efficient and output per worker increases.