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What measures may the government use to curb undesirable levels of inflation?

      

Discuss measures that the government may use to curb undesirable levels of inflation.

  

Answers


Maurice
(i) Use of wages policies.

(ii) Increase general production of goods.

(iii) Reduce public expenditure such as constructions of roads.

(iv) Taxes should be increased to reduce disposable income/ lowering the consumption expenditure.

(v) Restriction of imports/ impose heavy tariffs to make people switch their spending on imports.

(vi) Price legislation/ price controls as a temporary measure of keeping prices stable.

(vii) Use of monetary policies.
maurice.mutuku answered the question on August 10, 2017 at 11:55


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