Price controls involve the use of the power of the state to establish prices different from the ______ prices that would otherwise prevail.
a. demand
b. supply
c. indeterminate
d. equilibrium
d. equilibrium
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
When toilet paper sales increase, quarterly economic growth tends to rise. This is an example of:
A. two variables that are negatively correlated. B. the presence of ceteris paribus. C. correlation without causation. D. causation with no correlation.
Rational Ignorance
What will be an ideal response?
A price ceiling imposed on a monopoly may:
A. drive the monopolist out of business. B. lead to no shortage. C. lead to a shortage. D. All of the statements associated with this question are correct.