When a government lifted price controls after the war, prices
a. remained about the same
b. rose faster than wages
c. fell to prewar levels
d. required government support
B?
Right.
Ms. Sue, you've been helping a lot of people, could you help me with my question?
I'm sorry, Elissa, but I don't understand your math question either.
To determine the correct answer, let's break down the question and consider the options. The question states that the government lifted price controls after the war. Price controls are regulations or restrictions on the prices that can be charged for goods and services.
a. If prices remained about the same after lifting price controls, it would suggest that the removal of controls did not significantly impact prices.
b. If prices rose faster than wages after the removal of price controls, it would indicate that without regulations, prices increased at a faster rate than individual wages, potentially creating a gap between the affordability of goods and people's ability to pay for them.
c. If prices fell to prewar levels after the lifting of price controls, it would mean that removing regulations resulted in prices returning to the levels observed before the war.
d. If prices required government support after the lifting of price controls, it would indicate that prices were not able to stabilize or reach equilibrium without ongoing government intervention.
Considering the options, the most likely answer is b. Prices rising faster than wages after the removal of price controls.