Economics 2281 · O Level · Supply-side policy

Supply-side policy — practice question

A government in a country that is already operating at full employment raises its expenditure on education and training. How does this alter the chance of achieving low inflation in the short run and 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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