The price controls on consumer goods during World War II led to
A)permanent surpluses.
B)stable long-term prices.
C)a burst of inflation when they were ended.
D)increased production of consumer goods to satisfy demand.

Question

Quizplus · Accepted Answer

The price controls on consumer goods during World War II led to a burst of inflation when they were ended. This is because the artificially low prices that were set during the war meant that producers could not make a profit, leading to shortages of goods. When the price controls were ended after the war, prices skyrocketed as producers tried to make up for lost profits.

The Price Controls on Consumer Goods During World War II