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Question : The supply-side measure to control inflation is:

Option 1: reducing public expenditure

Option 2: price control through the public distribution system

Option 3: higher taxation to mop up liquidity

Option 4: credit control


Team Careers360 13th Jan, 2024
Answer (1)
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Team Careers360 15th Jan, 2024

Correct Answer: price control through the public distribution system


Solution : The correct option is reducing public expenditure.

Reducing public expenditure involves the government cutting back on its spending, which can help to reduce overall demand in the economy and, in turn, mitigate inflationary pressures.

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