Other things equal, if a full-employment economy reallocates a substantial quantity of its resources to capital goods, we would expect:
A)present consumption to rise.
B)future consumption to fall.
C)a lower rate of growth of real GDP.
D)labour productivity to rise.

Question

Quizplus · Accepted Answer

Reallocating resources to capital goods typically increases the economy's productive capacity, leading to higher labor productivity and potential future economic growth.

Other Things Equal, If a Full-Employment Economy Reallocates a Substantial