Match each situation with the method of government intervention used to rectify it. price floor contractionary fiscal policy price ceiling expansionary fiscal policy People have too much money, and there is a danger of inflation. arrowRight The GDP has fallen to an all-time low, and there is low demand for most goods. arrowRight Few farmers produce cotton because profits are at the equilibrium price. arrowRight Prices of staple foods have shot up because of shortages after an earthquake. arrowRight

See explanation

Explanation:

1. People have too much money, and there is a danger of inflation. = Contractionary fiscal policy

This will be vital in the reduction of the money in circulation. An example is increasing tax rate.

2. The GDP has fallen to an all-time low, and there is low demand for most goods. = Expansionary fiscal policy

An expansionary fiscal policy will boost demand. An example is reduction in tax.

3. Few farmers produce cotton because profits are at the equilibrium price. = Price floor

A price floor will motivate the farmers as they can sell their product above the equilibrium price.

4. Prices of staple foods have shot up because of shortages after an earthquake. = Price ceiling

Price ceiling is the compulsory maximum amount that the sellers will be able to sell the good. This will make the goods affordable to the people.

answer; /// the above statement is (true );