cloze test Practice Questions Answers Test with Solutions & More Shortcuts

PASSAGE

Most of the global economy is now subject to positive economic trends: unemployment is falling, ……(1) gaps are closing, growth is picking up, and, for reasons that are not yet clear, inflation remains below the major central banks' targets. On the other hand, productivity growth remains weak, income ……(2) is increasing, and less educated workers are struggling to find attractive employment opportunities. After eight years of aggressive ……(3) , developed economies are emerging from an ……(4) deleveraging phase that naturally suppressed growth from the demand side. As the level and ……(5) of debt has been shifted, deleveraging pressures have been reduced, allowing for a ……(6) global expansion. Still, in time, the primary determinant of GDP growth – and the ……(7) of growth patterns – will be gains in productivity. Yet, as things stand, there is ample reason to doubt that productivity will pick up on its own. There are several important items missing from the policy mix that cast a shadow over the realization of both full-scale productivity growth and a shift to more inclusive growth patterns. First, growth potential can't be realized without sufficient human capital.

This lesson is apparent in the experience of developing countries, but it applies to developed economies, too. Unfortunately, across most economies, skills and capabilities do not seem to be keeping pace with rapid structural shifts in labor markets. Governments have proved either unwilling or unable to act aggressively in terms of education and skills ……(8) or in redistributing income. And in countries like the United States, the distribution of income and wealth is so ……(9) that lower-income households cannot afford to invest in measures to ……(10) to rapidly changing employment conditions. Second, most job markets have a large information gap that will need to be closed. Workers know that change is coming, but they do not know how skills requirements are evolving, and thus cannot base their choices on concrete data. Governments, educational institutions, and businesses have not come anywhere close to providing adequate guidance on this front.