A government provides retraining for unemployed industrial workers in order to raise employment opportunities. This policy could have harmful effects on other government macroeconomic aims. What example shows 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.