To counteract relative price changes,the government could implement

Question

Quizplus · Accepted Answer

Implementing policies that affect the supply and demand for a specific good can help counteract relative price changes for that particular good. This can include subsidies for production or consumption, taxes or tariffs, and regulations. Other policies like monetary or fiscal policy may have broader effects on the economy as a whole and may not be as targeted to address specific relative price changes. Exchange rate policy may also be useful in some cases, but may not always be effective or appropriate for addressing relative price changes.

To Counteract Relative Price Changes,the Government Could Implement