For a price ceiling to have an impact on a market it:
A. must be set at the equilibrium price.
B. must be set below the equilibrium price.
C. can lead more goods to be produced in a market.
D. must be set above the equilibrium price.
Answer: B
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It can be shown using the IS-LM-FX model that a temporary expansion in the supply of money is effective in:
A) raising rates of interest. B) raising the rate of unemployment. C) combating temporary downturns in the economy. D) increasing consumer confidence.
Keynes (1941) claimed that government spending during wartime could generate a healthy increase in the demand for output, thus raising employment levels and boosting incomes
To avoid inflation, physical rationing, monetary measures and other controls were consequently needed. Indicate whether the statement is true or false