Question

Because government policymakers do not consider inflation desirable, their policies cannot be the source of inflation.” Is this statement true, false, or uncertain? Explain your answer.

Short answer

Because of the government's financial shortfalls and economic policy goals, the stated statement is false.

Step-by-step solution

Step 1. Introduction

Inflation is defined as a steady increase in the prices of goods and services in a given economy over a given period of time.

Step 2. Explanation

The stated statement is untrue because the government's budget deficits and aims for economic policy, such as creating greater employment opportunities, may lead to inflation. As a result, government policymakers' policies are a source of inflation in the country.