Identify two ways that the government intervenes in markets to control prices and restricts the use of individual property
What will be an ideal response?
The government can impose a price ceiling, or a maximum price that can be legally charged for a good or service. The price ceiling is set below the equilibrium price. Rent control limits price increases for rental housing. Minimum wage
You might also like to view...
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In 2015, JP Morgan Chase announced that it was laying off 5,000 employees. The laid-off employees who were not able to find jobs at another bank due to a permanent decline in demand in the banking industry would be considered
A) frictionally unemployed. B) structurally unemployed. C) seasonally unemployed. D) cyclically unemployed.
Is $1,000 received today worth as much as $1,000 received one year from now? Explain your answer
What will be an ideal response?
According to Okun's law, when the output gap is negative, cyclical unemployment:
A. is negative. B. equals structural unemployment. C. is positive. D. equals frictional unemployment.