Wage and price controls and incomes policies are
A) techniques used to increase aggregate demand without increasing aggregate supply.
B) methods used by government to try to reduce inflation without increasing unemployment.
C) examples of discretionary monetary policies.
D) currently in effect in the U.S. economy.
E) key elements of President Roosevelt's New Deal.

Question

Quizplus · Accepted Answer

Wage and price controls and income policies are tools used by the government to try to reduce inflation without increasing unemployment. They are implemented to control the rate of increase in prices and wages, as they aim to prevent inflationary pressures from taking hold in the economy. These policies are typically used in times of high inflation, as they are designed to reduce inflationary pressures without causing a contraction in economic activity.

Wage and Price Controls and Incomes Policies Are