O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2019 · Q221 Mark
A country is experiencing a period of full employment. What is most likely to lead to an increase in demand-pull inflation?
Aan increase in government spending
Ban increase in imports
Can increase in income tax rates
Dan increase in sales tax
✓ Correct answer
A: an increase in government spending
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