The government launches a major infrastructure programme to boost economic growth and employment. However, increased public spending begins to raise inflation rates. This situation best illustrates a trade-off between which macroeconomic objectives?

The question describes a government action aimed at boosting "economic growth and employment". However, this action leads to an increase in "inflation rates".

Let's break down the objectives:

• "Economic growth and employment" are positive outcomes the government is trying to achieve. Boosting employment is directly related to the macroeconomic objective of full employment.
• "Increased public spending begins to raise inflation rates" means that the objective of price stability is being compromised.

Therefore, the situation illustrates a trade-off between achieving full employment (and economic growth) and maintaining price stability.

• A. Economic growth and external stability: External stability is not mentioned as being directly affected or traded off.
• B. Price stability and redistribution of wealth: Redistribution of wealth is not mentioned.
• C. Full employment and price stability: This option directly matches the objectives and the trade-off described: the pursuit of employment leads to a loss of price stability.
• D. Economic growth and redistribution of wealth: Redistribution of wealth is not mentioned.

The final answer is $\boxed{\text{C. Full employment and price stability}}$.