Which aspect of economic growth is most likely being addressed by the president in a passage discussing increased investment in infrastructure and education?

• A. Human capital development
• B. Monetary policy interventions
• C. Short-run fluctuations in GDP
• D. International trade deficits

Answer: (A)

Verified step by step guidance

1. Step 1: Identify the key terms in the passage—'increased investment in infrastructure and education'—and understand what they represent in economic growth context.
2. Step 2: Recall that economic growth can be driven by factors such as physical capital accumulation, human capital development, technological progress, and institutional improvements.
3. Step 3: Recognize that investment in education directly relates to improving the skills, knowledge, and productivity of the workforce, which is known as human capital development.
4. Step 4: Understand that infrastructure investment can also support human capital by improving access to education and health services, further enhancing labor productivity.
5. Step 5: Conclude that the aspect of economic growth being addressed is human capital development, rather than monetary policy (which deals with money supply and interest rates), short-run GDP fluctuations (which are temporary changes), or international trade deficits (which relate to trade balances).