Q235
Which statement relates to macroeconomics?
A.
Oil prices are rising in Pakistan
B.
Profit rate is high on textile industry
C.
The firms try to make huge profits
D.
The government has failed to control inflation
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The government has failed to control inflation relates to macroeconomics. Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contradictory monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.