Inflation can be curbed by _______
The correct answer is D. Reducing aggregate demand
In order to curb inflation, reducing aggregate demand is generally considered an effective measure. Therefore, the correct option is Reducing aggregate demand.
When aggregate demand exceeds the available supply of goods and services in an economy, it can lead to inflationary pressures.
By reducing aggregate demand, either through fiscal or monetary policies, the government can control inflation.
Previous question Next questionWhat is Exam without Practice? With our customizable CBT practice tests, you’ll be well-prepared and ready to excel in your examsStart Practicing Now