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Question
Which of the following remedies are adopted to control price rise in the economy?
Which of the following remedies are adopted to control price rise in the economy?
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Solution
The correct option is C All of the above
Price rise in the economy is required to be controlled, for which the government and the monetary authorities undertake various policy changes. It can be categorised into:
Monetary measures are those where the RBI reduces the money supply in circulation through credit control measures.
Fiscal measures are undertaken by the government by imposing taxes on high income groups and on many consumable goods.
Government also fixes the prices of some essential items and asks the traders to sell goods in the market at those price levels, which is known as administered price mechanism.
Price rise in the economy is required to be controlled, for which the government and the monetary authorities undertake various policy changes. It can be categorised into:
Monetary measures are those where the RBI reduces the money supply in circulation through credit control measures.
Fiscal measures are undertaken by the government by imposing taxes on high income groups and on many consumable goods.
Government also fixes the prices of some essential items and asks the traders to sell goods in the market at those price levels, which is known as administered price mechanism.
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