A more thorough explanation:

Definition: Wage and price controls refer to a system where the government sets a maximum limit on the prices of goods and services that can be charged by businesses and the wages that can be paid to workers in different jobs.

Example: During World War II, the US government imposed wage and price controls to prevent inflation. The government set a maximum limit on the prices of goods and services, such as food, clothing, and housing, to ensure that they remained affordable for everyone. Similarly, the government also set a maximum limit on the wages that could be paid to workers in different jobs, such as factory workers, office clerks, and teachers.

Explanation: The example illustrates how wage and price controls work in practice. By setting a maximum limit on prices and wages, the government aims to prevent businesses from charging excessive prices and workers from demanding excessive wages. This helps to keep the cost of living affordable for everyone and prevent inflation from spiraling out of control.