Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Question

Quizplus · Accepted Answer

Trading off capital goods for increasing amounts of consumer goods today may increase immediate consumption and short-term growth, but it will decrease long-term growth as the economy lacks necessary tools for productive capacity. The decrease in the quantity of capital goods results in a decrease in the capacity to produce more consumer goods in the future.

Trading Off Capital Goods for Increasing Amounts of Consumer Goods