In August 1971, President Nixon implemented price and wage controls to combat inflation. Which of the following statements best describes the change in price levels after the price controls policy was implemented?
a. Inflation remained almost the same for many years.
b. The rate of inflation decreased and remained around 3 percent throughout 1972.
c.. The rate of change in prices fell below zero in mid-1970s.
d. Implementation of controls led to an increase in inflation rates in 1972.
b. The rate of inflation decreased and remained around 3 percent throughout 1972.
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Nonexcludable goods tend to be undersupplied because:
A. the free rider problem persists. B. people do not pay the true value of the good. C. people rarely willingly pay for something they could get for free, regardless of how much they value it. D. All of these statements are true.
A linear demand curve has a:
A. constant slope and a constant elasticity, but they need not be equal. B. changing slope, but constant elasticity. C. constant slope, but changing elasticity. D. slope which is the same as the elasticity.