In order to be effective, a price ceiling
A) must be set above equilibrium price.
B) must be set below equilibrium price.
C) must be set at equilibrium price.
D) must be a zero price.
Answer: B
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Government intervention in agriculture began in the United States in the 1890s
Indicate whether the statement is true or false
Japanese exports are heavily concentrated in
A) agricultural products such as rice. B) natural resource products such as coal. C) manufactured products including motor vehicles. D) Both A and C.
The interval between the recognition of a need for a policy change and when the policy change is instituted is called the:
a. recognition lag. b. impact lag. c. policy lag. d. administrative lag.
We use the term expansionary fiscal policy when the overall effect of decisions about taxation and spending is to:
A. increase aggregate demand. B. decrease aggregate supply. C. increase aggregate supply. D. decrease aggregate demand.