High School

Which macroeconomic goal do investments in human capital and capital goods contribute to? How?

A. Such investments contribute to the goal of price stability by increasing economic production.

B. Such investments contribute to the goal of economic growth by increasing government spending.

C. Such investments contribute to the goal of price stability by increasing consumer spending.

D. Such investments contribute to the goal of economic growth by increasing economic productivity.

Answer :

I think it B I might be wrong but b is the only that make sense

Investments in human capital and capital goods lead to economic growth by increasing economic productivity, which raises the GDP of a country.

Investments in human capital and capital goods contribute significantly to the macroeconomic goal of economic growth. This type of investment enhances economic productivity as it increases the level of knowledge, education, and skill sets per person, as well as the amount and kind of machinery and equipment available to help people work more efficiently. For example, using word processing software on a laptop rather than a typewriter, or the application of GPS technology and Universal Product Codes, markedly increases productivity. When these improvements occur alongside technological advances, the overall output of the economy, or GDP, is likely to increase, thus underpinning economic growth.