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As wages increase, more people are willing to work but production costs rise. If strong economic growth persists, wages pressures continue to build, leading to increasing inflation (cost-push inflation). On the other hand, unemployment provides potential for the economy to expand and can act as a downward pressure on inflation. Furthermore expansionary fiscal policies will cause higher consumer spending and therefore a rise in imports; this causes a current account deficit. This is particularly a problem in the UK, where consumers have a high Marginal propensity to consume imports.
However, it is possible to attain full employment through different approaches...
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