Price floors and price ceilings
a. lead to the same prices and quantities that would be found in a competitive market
b. lead to technical efficiency
c. cause the demand curve to shift to the left
d. usually result from government intervention
e. cause the supply curve to shift to the right
D
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The kinked demand curve is an attempt to model strategic behavior
Indicate whether the statement is true or false
Statistical data suggests that the rate of inflation in the U.S. typically decreased: a. after World War I and World War II
b. during periods of depression or recession. c. before the World War I and World War II. d. during periods of economic growth.
Which of the following statements is true concerning the U.S. national debt?
A. Budget surpluses in 2002 and 2003 have reduced the national debt. B. U. S. government agencies own about 42 percent of the total national debt. C. Private American citizens own over 70 percent of the total national debt. D. Foreigners hold 50 percent of the total national debt.
Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use fiscal policy to close the existing gap, it should
A. decrease taxes. B. increase taxes. C. increase the money supply. D. increase government spending.