An expanding economy requires more workers.If the supply of workers becomes inadequate to meet the demand,what is the likely impact on the economy?
A) An economic slowdown is likely
B) Employment trends will reverse and unemployment will occur
C) Government deficits will result from capacity utilization
D) Inflation may result from upward wage pressures

Question

Quizplus · Accepted Answer

If the supply of workers becomes inadequate to meet the demand, employers may have to offer higher wages to attract workers. This can create upward wage pressures and contribute to inflationary pressures in the economy.

An Expanding Economy Requires More Workers