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 runs.
E) higher rates of inflation.

Question

Quizplus · Accepted Answer

Investing in education typically results in a short-term decrease in output because resources are diverted from immediate production. However, in the long run, a more educated workforce enhances productivity and innovation, leading to increased output.

As a Country Devotes More of Its Resources to Education