What could a reduction in LRAS due to a reduction in the working-age population in a country potentially be prevented or offset by?
A)decreasing capital investment
B)increasing business taxes
C)taking young workers out of school and putting them immediately to work
D)increasing the training and education levels of the workforce

Question

Quizplus · Accepted Answer

A reduction in LRAS due to a reduction in the working-age population can be prevented or offset by increasing the training and education levels of the workforce. With better training and education, the existing workforce can become more productive and efficient, leading to an increase in LRAS. Decreasing capital investment, increasing business taxes, and taking young workers out of school and putting them immediately to work are not effective ways to prevent or offset a reduction in LRAS caused by a reduction in the working-age population.

What Could a Reduction in LRAS Due to a Reduction