In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce.
b. surpluses and shortages will exist.
c. all buyers will get what they want.
d. disequilibrium will automatically correct itself.
e. surpluses and shortages will put pressure on the price to move to its equilibrium.
b
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Excess quantity demanded may result from
A) a government-imposed minimum price above market equilibrium. B) a government-imposed maximum price below market equilibrium. C) an oversupply of output. D) technological progress.
Stable money and prices are a key source of economic growth because
a. they allow activist policymakers to fine tune the economy. b. uncertainty and instability in prices will attract investors and business decision makers. c. price instability increases capital formation. d. price stability reduces the risks that accompany investment and other long-term commitments.