Business cycles disappear when firms
A) hold nominal wages constant as nominal demand changes.
B) hold prices constant as nominal demand changes.
C) change prices proportionately with nominal demand changes.
D) change wages proportionately with nominal demand changes.
C
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The above figure shows supply and demand curves for milk. If the government passes a law that establishes $3 per month as the legal minimum per gallon price, change in producer surplus will be
A) b + c + d. B) b - f - g. C) c + d + g. D) b - g.
If the government places a price ceiling on cancer-treating drugs, then
A. The supply of cancer-treating drugs will increase. B. There will be no change in the number of people who die from cancer. C. Fewer cancer treating drugs will be available. D. Fewer people will die from cancer.