Answer: The answer is B.
Explanation:
The policy of retraining unemployed industrial workers to increase employment opportunities may affect other government macroeconomic aims. For example, a rise in wage-earning capacity leads to demand-pull inflation. When workers are retrained and their skills improve, they become more productive, which leads to economic growth. However, if increased productivity results in higher wages, it can lead to increased demand for goods and services. This can drive up prices and causing to inflation.
While more employed workers may reduce government benefit payments, retraining costs may offset any savings in the short term. Near full employment may result in a more stable balance of payments as domestic production increases. However, this may not always be desirable in the long run if it leads to inflation or other economic imbalances.
Therefore, while retraining unemployed workers can have positive effects on employment and productivity, policymakers must also consider potential negative consequences, such as inflation. They must implement measures to address these issues. This may involve adjusting monetary or fiscal policy to manage inflationary pressures. It may also involve promoting the development of existing industries to absorb increased labor supply.