The presence of wage and price controls in the United States during WWII:
A)had little impact on inflation because of the Depression.
B)helped to reduce the inflationary pressures created by expansionary fiscal policy.
C)helped to reduce the inflationary pressures created by contractionary fiscal policy.
D)was not successful in reducing inflation during this period.

Question

Quizplus · Accepted Answer

Wage and price controls during WWII were implemented to manage inflationary pressures that arose from the significant increase in government spending (expansionary fiscal policy) to finance the war effort. By controlling wages and prices, the government aimed to prevent the economy from overheating and keep inflation in check, despite the increased demand for goods and services.

The Presence of Wage and Price Controls in the United