Suppose the government imposes rent control (a price ceiling) below the equilibrium price for rental housing. Which of the following could result?
a. Tenants risk breaking rent control law.
b. The quality of existing rental housing deteriorates.
c. Shortages.
d. All of these.
d
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Suppose workers become pessimistic about their future employment, which causes them to save more and spend less. If the economy is on the intermediate range of the aggregate supply curve, then:
a. both real GDP and the price level will fall. b. real GDP will fall and the price level will rise. c. real GDP will rise and the price level will fall. d. real GDP and the price level will rise.
The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated. B) be against any two firms merging. C) consider the market oligopolistic. D) regard the industry as competitive.
Unions tend to ________ import restrictions and ________ a higher minimum wage
A) favor; favor B) favor; oppose C) oppose; favor D) oppose; oppose