Economics 0455 · IGCSE · Supply-side policy

Supply-side policy — practice question

A government raises its expenditure on education and training substantially over a number of years. What is the likely impact of this policy on the inflation rate in both the short run and the long run?

  • Ashort-run decreases; long-run decreases
  • Bshort-run decreases; long-run increases
  • Cshort-run increases; long-run decreases
  • Dshort-run increases; long-run increases

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