Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls.
B) Price controls may take the form of price ceilings or price floors.
C) Price ceilings below the equilibrium price can cause black markets to develop.
D) Rent controls are examples of price floors.
D
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Refer to the figure above. The economy is currently at E. Which of the following is likely to happen if a recession hits the economy? Assume that wages are downwardly rigid
A) The labor market equilibrium will move from E to F. B) The labor market equilibrium will move from E to D. C) The labor market equilibrium will move from E to G. D) The labor market equilibrium will move from E to H.
If there is an increase in the expected future U.S. exchange rate, there is
A) an upward movement along the demand curve for dollars. B) a downward movement along the demand curve for dollars. C) a leftward shift of the demand curve for dollars. D) a rightward shift of the demand curve for dollars.