A government offers retraining to unemployed industrial workers so as to expand employment opportunities. This policy could have harmful consequences for other government macroeconomic objectives. Which term describes this situation?
- ABetter skilled workers may increase productivity and improve economic growth.
- BIncreased wage-earning capacity may lead to demand-pull inflation.
- CMore employed workers may reduce government expenditure on benefit payments.
- DNear full employment may result in a more stable balance of payments.