If the economy is at full employment, expansionary fiscal policy is most likely to lead to:

Name: If the economy is at full employment, expansionary fiscal policy is most likely to lead to:
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When the economy is at full employment, any expansionary fiscal policy such as increasing government spending or cutting taxes is likely to create additional demand in the economy. As a result, firms may increase prices to take advantage of this increased demand, leading to higher inflation rates.

If the Economy Is at Full Employment, Expansionary Fiscal Policy