As a country devotes more of its resources to education, we can expect:
A) output to stay constant for all time
B) output to fall in the short run but rise in the long run
C) output to rise in the short run but fall in the long run
D) output to rise in the short and long run
E) higher rates of inflation

Question

Quizplus · Accepted Answer

Investing in education may initially divert resources from other productive activities, potentially reducing output in the short run. However, in the long run, a more educated workforce can lead to higher productivity and economic growth, increasing output.

As a Country Devotes More of Its Resources to Education