Can anybody work out this economics IB question?

a) full employment would create a strong demand for goods and services (e.g. people buying stuff, cars, groceries, houses, etc). With increase demand you get an increase in the overall Price of stuff which is the same thing as inflation. The Govt usually increases interest rates to slow down the demand and hence the inflation.

b) I totally agree with this proposition (but sadly it is not supported by most Govts across the world). The good thing about low unemployment is that it gives people jobs which gives them money, self-esteem, and they pay income tax which helps the Govt provide amenities etc. Workers can buy goods and therefore businesses thrive because they have lots of paying customers. It also gives workers a sense of belonging (i.e. friendship with work colleagues). The only downside is inflation but that is a small price to pay for a prosperous country.