Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Education is to workforce productivity
B
Consumption is to short-run aggregate demand
C
Government spending is to inflation
D
Taxation is to economic recession
Understanding the Answer
Let's break down why this is correct
Answer
Investment spending is important for long-run aggregate supply because it helps businesses grow and produce more goods and services over time. When companies invest in new equipment, technology, or buildings, they can make things more efficiently and increase their output. This is similar to how education improves a worker's skills, leading to more productivity. For example, if a factory buys new machines, it can produce more products faster, which boosts the overall supply in the economy. So, investment spending is to long-run aggregate supply as education is to worker productivity.
Detailed Explanation
Investment spending helps businesses grow and produce more over time. Other options are incorrect because This answer confuses short-term effects with long-term growth; This option mixes up different concepts.
Key Concepts
Investment Spending
Long-Run Aggregate Supply
Workforce Productivity
Topic
Investment and Long-Run Supply
Difficulty
easy level question
Cognitive Level
understand
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