Usually, increased government spending for war increases inflationary pressures.The principal reason that inflation occurred during the Vietnam War and not during World War II was the existence, during World War II, of
A)full employment.
B)government ownership of factories.
C)full production.
D)wage and price controls.
E)high levels of patriotism.

Question

Quizplus · Accepted Answer

During World War II, the government implemented wage and price controls to combat inflationary pressures that usually arise during times of war. This helped to keep inflation in check, despite increased government spending. However, during the Vietnam War, wage and price controls were not implemented, and inflation rose as a result of increased government spending. Therefore, the principal reason inflation occurred during the Vietnam War and not during World War II was the presence of wage and price controls during World War II.

Usually, Increased Government Spending for War Increases Inflationary Pressures