The Trump administration hopes that its program of infrastructure spending might expand employment by luring some prime-age workers back into the labor force.This would ________ the employment-population ratio,which would increase ________.
A)increase; growth in labor productivity
B)increase; the growth rate of hours worked
C)decrease; growth in labor productivity
D)decrease; the growth rate of hours worked

Question

Quizplus · Accepted Answer

Infrastructure spending is expected to create new job opportunities, which could lure some prime-age workers who have left the labor force back. As a result, the employment-population ratio would increase, which would reflect an increase in the number of employed individuals relative to the population. This, in turn, would increase the growth rate of hours worked as more people are participating in the labor force. However, this would not directly affect labor productivity, which is mainly affected by technological advancements, capital investment, and skills development.

The Trump Administration Hopes That Its Program of Infrastructure Spending