Question 4 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27
Nixon’s wage-and-price freeze was intended to stop prices and wages from rising rapidly. The reasoning was that inflation shows up in increasing wages and prices, so temporarily holding them steady could slow or halt inflation. The other choices either assume people would accept lower pay or suggest effects on consumer spending or unemployment, which do not explain the freeze.
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