In the United States, the Most Recent Use of Wage

question 23

Multiple Choice

In the United States, the most recent use of wage and price controls occurred during the:

• A) Nixon administration.
• B) Carter administration.
• C) Reagan administration.
• D) Clinton administration.

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Definitions:

Scarcity

The fundamental economic problem of having limited resources to meet unlimited wants and needs.

Trade-Off

A situation that involves losing one quality, quantity, or property of a set or design in return for gaining another.

Inflation

The speed at which the overall price level for goods and services increases, thereby diminishing the buying power.

Productive Capacity

The maximum output that an economy can produce without increasing inflation, given its current level of resources.