wage-price controls

Wage-price controls are government policies that set limits on how much workers can be paid and how much businesses can charge for goods and services. The aim is to keep inflation under control by preventing prices and wages from rising too quickly, which can lead to a cycle of higher costs and prices. These controls can be implemented temporarily during economic crises, but may also cause shortages or reduced supply if they are too strict, since businesses might not find it profitable to produce or sell at the capped prices.