Oil prices are rising in Pakistan
Profit rate is high on textile industry
The firms try to make huge profits
The government has failed to control inflation
✅ The correct answer is D.
The government has failed to control inflation relates to macroeconomics. Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contradictory monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.
The government has failed to control inflation relates to macroeconomics. Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contradictory monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.