Which of the following policies would most economists consider the LEAST desirable method to control inflation?
A) a reduction of the rate of growth of the money supply
B) increases in personal income tax rates
C) an imposition of wage and price controls
D) significant reductions in government spending levels
E) a reduction of the size of the government budget deficit

Question

Quizplus · Accepted Answer

Wage and price controls are often viewed as the least desirable method to control inflation by economists as they can lead to shortages or surpluses, reduced incentives for businesses to produce, and can create distortions in the allocation of resources. The other options listed are more commonly accepted as effective methods to control inflation, such as reducing the money supply, increasing taxes, reducing government spending, or reducing the budget deficit.

Which of the Following Policies Would Most Economists Consider the LEAST