The most appropriate policy to deal with inflation is:

Question

Quizplus · Accepted Answer

The most appropriate policy to deal with inflation is contractionary monetary policy, which aims to decrease the money supply and increase interest rates to reduce spending and curb inflationary pressures. Contractionary fiscal policy involves reducing government spending and raising taxes, which could also help control inflation, but it is less effective than monetary policy because it may take longer to have an impact on the economy. Supply-side policy focuses on increasing the productivity and efficiency of the economy, but it may take longer to reduce inflationary pressures than monetary policy. Therefore, the best choice for dealing with inflation is contractionary monetary policy.

The Most Appropriate Policy to Deal with Inflation Is