Price floors are used as a method to:
a. ensure buyers that goods won't be cheaper tomorrow.
b. see that production levels don't fall too low.
c. guarantee there will be enough food for everyone.
d. combat excess demand in the market.
e. ensure sellers a minimum price for their goods.
e
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The traditional Keynesian approach to fiscal policy assumes that
A) an equal income distribution ensures a stable economy. B) consumers spend more when their incomes are higher. C) cutting taxes is a more effective way to stimulate the economy than is increasing government spending. D) the effect of unemployment compensation is to destabilize the economy.
Using Scenario 2 suppose Jennifer has eliminated three of the answers but is unsure of which of the remaining two answers are correct. Determine whether it is rational for Jennifer to guess
What will be an ideal response?