Which of the following measures could be taken to check existing inflation in an economy:
A. The government may go for the import of goods which are in shortsupply— as a short-term measure.
B. As a long-term measure, governments go on to increase the production to matching the level of demand.
C. The governments may try to cool down the price by cutting down the production cost of the goods showing price rise with the help of tax breaks—cuts in the excise and custom duties.
D. All of the above
Answer:D
Which of the following measures could be taken to check existing inflation in an economy:
A. The government may go for the import of goods which are in shortsupply— as a short-term measure. B. As a long-term measure, governments go on to increase the production to matching the level of demand. C. The governments may try to cool down the price by cutting down the production cost of the goods showing price rise with the help of tax breaks—cuts in the excise and custom duties. D. All of the above
Explanation: The governments around the world distanced themselves from this debate and have been taking recourse to all possible options while controlling inflation. The governments resort to following options to check rising inflation: