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A long run solution of inflation lies in
Controlling Demand
Enhancing Supply
Both
None
Alright, let’s break it down. When we talk about long-run solutions to inflation:
- Controlling Demand: If too many people are trying to buy too few goods, prices shoot up. Managing demand (like using interest rates to slow borrowing) can help. But that usually only works in the short run—people may just wait and spend later.
- Enhancing Supply: Making more goods available helps balance out demand. In the long run, increasing productivity, improving infrastructure, and encouraging investment can make sure there’s enough supply to meet demand, which keeps prices stable.
- Both: Here’s the thing—most economists agree you need a mix. You can cool down demand while ramping up supply. That combo is the best bet for beating inflation over the long haul.
- None: If you ignore both sides, inflation tends to stick around.
Option 3 – Both is the correct answer. A fix that lasts needs both tools: control demand and boost supply.
By: santosh ProfileResourcesReport error
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