An increase in education and training

Question

Quizplus · Accepted Answer

Education and training lead to an increase in labor productivity, as workers are able to perform their jobs more efficiently and effectively. This can lead to an increase in real GDP growth, as total output is increased with the same amount of resources. However, education and training do not necessarily lead to an increase in aggregate hours or the employment-to-population ratio, as these depend on other factors such as the availability of jobs and the willingness of individuals to work.

An Increase in Education and Training