A policymaker wants to reduce inflation. In order to make an intelligent decision about how to do so, the policymaker:

Question

Quizplus · Accepted Answer

In order to effectively reduce inflation, the policymaker needs to understand the causes of inflation, such as the government's printing of too much money. Without understanding the root causes of inflation, any attempts to reduce it may not be successful or may have unintended consequences. Therefore, option B is the best choice. The other options are incorrect because inflation can reoccur even after it has been reduced (option A), it is not enough to simply determine whether people are better off as a result of inflation (option C), and reducing inflation can come with costs (option D).

A Policymaker Wants to Reduce Inflation