Price Controls Tend to Be Ineffective in Controlling Inflation Because

question 26

Multiple Choice

Price controls tend to be ineffective in controlling inflation because they

• A)fail to shift the SRAS curve sufficiently far to the right.
• B)suppress inflation rather than eliminate it.
• C)widen the government's budget deficit.
• D)reduce the rate of growth of the money supply.

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Definitions:

Memory Fades

The gradual loss of the ability to recall information or experiences over time.

Lack of Use

A situation where a product, skill, or service is not utilized, potentially leading to its degradation or obsolescence.

Cue-dependent

Refers to the phenomenon where recall of information is improved when retrieval conditions are similar to the conditions present during encoding.

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it within working memory or to encode it for storage in long-term memory.