Practice mode Basic of Economics

How can a government control inflation?

Correct answer A. Increasing supply of goods

Explanation

Raising the supply of goods helps to meet excess demand, easing the upward pressure on prices, whereas more money, more demand or lower taxes would add to inflation.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.