Answered

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The government is concerned that the high inflation rate is threatening the sustainability of recent economic growth. What is the best way for the government to reduce the inflation rate?

Sagot :

Eooyibo123idn

Answer:

both raising taxes and reducing government spending, reduce the amount of money in the economy and reduce inflationary pressure on prices

Explanation:

Inflation is a situation where prices of goods and services become high. It can be caused by increased sand where consumers are willing to spend more on goods, or by an increase in production cost forcing suppliers to increase price.

The government can take various measures to control price increase during an inflation.

If money supply is reduced by less government spending and increased tax, there will be less tendency for price to increase.

Consumers will not be able to buy at the high price so suppliers are forced to reduce their prices

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