Economists Feel That Incomes Policy, If Successful in Controlling Inflation

Multiple Choice

Economists feel that incomes policy, if successful in controlling inflation:

A) is the most desired policy because it allows government to decrease the rate of inflation relatively quickly.
B) causes an underallocation of resources to the production of products for which there is high demand.
C) causes an underallocation of resources to the production of products for which there is low demand.
D) is very cost efficient.