Which of the following statements is true?
A) Price ceilings set below the equilibrium price cause shortages.
B) Surpluses result when a price floor is set above the equilibrium price.
C) Price ceililngs set above the equilibrium price cause surpluses.
D) Price ceilings are set by the market and price floors are set by the government.
E) ?a and b
E
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Bank X had a reputation for asking few questions when it provided loans. Five years later, the majority of the loans were not repaid. This is because the bank had failed to address the
A) moral hazard problem. B) free-rider problem. C) contrary selection problem. D) adverse selection problem.
Explain how the economy moves back to full employment from recession. Be sure to detail what happens to short-run aggregate supply, unemployment, equilibrium GDP and the price level
What will be an ideal response?