the most likely effect of expansionary fiscal policy when the economy is at full employment is:
A. a higher rate of economic growth
B. a decrease in the natural rate of unemployment
C. lower interest rates
D. accelerating inflation
E. an increase in aggregate supply
D. accelerating inflation
When the economy is at full employment, expansionary fiscal policy, such as increased government spending or tax cuts, is likely to lead to increased demand for goods and services without a corresponding increase in supply. This increase in demand can lead to inflationary pressures as producers struggle to keep up with higher levels of demand.