Economics 0455 · IGCSE · Supply-side policy

Supply-side policy — practice question

A country’s government, while the economy is at full employment, raises expenditure on education and training. How does this change the chance of obtaining low inflation in the short run and in the long run?

  • Ashort run less likely; long run less likely
  • Bshort run less likely; long run more likely
  • Cshort run more likely; long run less likely
  • Dshort run more likely; long run more likely

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