As the demand for goods and services increases, job growth _____.

• A. becomes unpredictable and unrelated to market conditions.
• B. tends to increase as firms hire more workers to meet higher demand.
• C. remains unchanged because demand does not affect employment.
• D. decreases as firms automate production.

Answer: (B)

Verified step by step guidance

1. Understand the relationship between demand for goods and services and employment: When demand increases, firms typically need to produce more to meet this demand.
2. Recognize that to increase production, firms often need to hire more workers, leading to job growth.
3. Consider the economic principle that higher demand leads to higher output, which usually requires more labor input.
4. Evaluate the options given: job growth becoming unpredictable or unrelated to market conditions is unlikely because labor demand is tied to production needs.
5. Conclude that the most consistent economic reasoning is that job growth tends to increase as firms hire more workers to meet higher demand.