A price ceiling set below a market equilibrium price causes

Which of the following is true concerning the distribution of income?

a. Various measures of income inequality can be used to objectively determine the fairness of an income distribution. b. When the political process is democratic, income transfer programs will redistribute income from the rich to the poor. c. The fairness of an income distribution is a normative concept; it cannot be determined objectively by economic criteria. d. Income inequality is the fairest method to allocate income.

A decrease in real GDP would affect the U.S. economy by:

A. cutting tax revenues and raising government expenditures. B. cutting government expenditures and raising tax revenues. C. raising both tax revenues and government expenditures. D. cutting both government expenditures and tax revenues.