A government is considering reallocating resources from the production of consumer goods to capital goods to stimulate long-term economic growth. Which of the following outcomes is most likely to occur as a result of this shift?

When a government reallocates resources from consumer goods to capital goods, it is focusing on producing items that help create more goods in the future, like machinery and infrastructure. This shift can lead to increased productivity because capital goods help businesses operate more efficiently. For example, if a factory invests in new equipment, it can produce more products at a lower cost over time. As a result, while people may have fewer consumer goods in the short term, the economy can grow stronger in the long run, leading to more jobs and higher incomes. Ultimately, this strategy aims to boost the overall economy by creating a foundation for future growth.