In the early 1980s the government's primary method of combating inflation was

Question

Quizplus · Accepted Answer

The primary method adopted by the government in the early 1980s to combat inflation was restrictive monetary policy. This involved reducing the money supply, which in turn increased interest rates and reduced consumer spending. By decreasing the amount of money circulating in the economy, the government hoped to reduce the upward pressure on prices caused by excess demand. Price and wage controls were also considered but were not implemented as they were seen as too extreme and could lead to shortages and lower economic growth. Indexing bonds to protect savers was not a primary method of combating inflation but rather a measure to protect investors from the negative effects of inflation. Undoing the "self-inflicted" wounds refers to policies that may have contributed to inflation in the first place, but it is not a specific measure to combat inflation.

In the Early 1980s the Government's Primary Method of Combating