"Regulations do not always have the intended result." Do you agree or disagree? Why?
What will be an ideal response?
Agree. Firms often try to avoid the effects of regulation. Firms engage in creative response, which is a response to a regulation that conforms to the letter of the law but undermines its spirit. Further, individuals may alter their behavior in ways that run counter to the goals of the regulation. For example, people may drive less carefully in safer cars, causing as many injuries as when the cars were less safe.
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A change in the aggregate price level moves the economy along a given aggregate supply curve.
Answer the following statement true (T) or false (F)
Things that have already been produced that are in turn used to produce other goods and services over time are called "capital."
Answer the following statement true (T) or false (F)