Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A. creating excess quantities demanded or excess quantities supplied.
B. pushing prices to market clearing levels more rapidly than private market forces.
C. promoting the attainment of an unhindered market equilibrium.
D. allowing quantity demanded to adjust to equality with aggregate supply.
Answer: A
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If a country has an expenditure multiplier of 10, the slope of its aggregate planned expenditure (AE) curve is
A) .90. B) 10.00. C) .50. D) .10. E) .80.
A short-run macroeconomic equilibrium occurs
A) at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve. B) at the intersection of the short-run aggregate supply curve and the aggregate demand curve. C) at the intersection of the short-run aggregate supply curve, the long-run aggregate supply curve, and the aggregate demand curve. D) when the rate at which prices of goods and services increase equals the rate at which money wage rates increase.
Refer to Figure 9-5. Without the tariff in place, the United States produces
A) 12 million pounds of coffee. B) 26 million pounds of coffee. C) 33 million pounds of coffee. D) 45 million pounds of coffee.
Consumer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.