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A long run solution of inflation lies in
Controlling Demand
Enhancing Supply
Both
None
Let’s break it down:
- Option 1: Controlling Demand
This means using things like interest rates or taxes to curb people’s spending. It can cool inflation for a bit, but if there aren’t enough goods, prices still rise over time.
- Option 2: Enhancing Supply
Increasing what’s produced or how efficiently it’s delivered makes stuff more available. More goods, less pressure on prices—this helps in the long run.
- Option 3: Both
Here’s the thing: long-term inflation really needs both demand management and supply improvements. Alone, each tool has limits. Together, they keep prices in check and the economy stable.
- Option 4: None
Ignoring both leads to uncontrolled inflation—definitely not the solution.
Correct answer: Option 3 – Both
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