Economics · May / June 2023 · Paper 11 · Question 20

The government of a country operating at full employment increases its spending on education and training. How does this affect the likelihood of achieving low inflation in the short run and the long run?

1. Ashort run: less likely; long run: less likely
2. Bshort run: less likely; long run: more likely
3. Cshort run: more likely; long run: less likely
4. Dshort run: more likely; long run: more likely

As printed in the paper