Answer:
Hi there!
Wage Control
In the 1970s, part of the stagflation was caused by rising wages (powerful trade unions). A policy tried was wage control – government intervention to limit wage rises. In theory, limiting wage increases can break the cycle of wage inflation and help to improve the economic situation.
Affects:
Until the 1970s, many economists believed that there was a stable inverse relationship between inflation and unemployment. ... In the 1970s, however, a period of stagflation—or slow growth along with rapidly rising prices—raised questions about the assumed relationship between unemployment and inflation.
1)Monetary policy can generally try to reduce inflation (higher interest rates) or increase economic growth (cut interest rates). ...
2)One solution to make the economy less vulnerable to stagflation is to reduce the economies dependency on oil.
I hoped this helped. Have a good day!
