The major drawback of a binding price ceiling is:
a. it causes a surplus
b. government regulations of this kind are difficult to enforce
c. it causes a shortage.
d. none of the above; there is no drawback.
c
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In order for a nation to be able to consume more in the future, it needs to
A) produce less today in aggregate and save the difference between consumption and income. B) produce more today in aggregate and save the difference between consumption and production. C) consume more today in aggregate and borrow the difference between consumption and income. D) consume less today in aggregate and save the difference between consumption and income.
Suppose the real GDP in an economy in the year 1999 was $2,000 and the total population was 500 . The economy experienced a 5% growth in real GDP and a 2% growth in its population in 2000 . Calculate the change in per capita income of the economy during this period
a. +1% b. +2.5% c. -3% d. +3% e. -4%