Which of the following situations are likely to require direct controls to achieve overall balance?
A) when an economy is experiencing inflation with unemployment
B) when an economy is experiencing inflation with a trade deficit
C) when an economy is experiencing inflation with a trade surplus
D) when an economy is experiencing inflation with a budget deficit

Question

Quizplus · Accepted Answer

Direct controls may be necessary to achieve overall balance in an economy experiencing inflation with unemployment, as market forces alone may not be enough to correct both issues simultaneously. The other situations may require different policy approaches.

Which of the Following Situations Are Likely to Require Direct