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Policy options
Expenditure Switching
costs/benefits of controlling inflation
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sahara
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Cards (2)
How can tariffs or quotas affect inflation in the UK?
They could attempt to control inflation by making
British
goods rise
slower
in price.
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What is a potential downside of controlling inflation through tariffs or quotas?
It could lead to a fall in
demand
for
domestic
goods, causing
unemployment
and a fall in
growth.
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