The ultimate bargaining tool for unions is

A rent ceiling

A) increases the quantity of rental units supplied. B) cannot change the market price. C) set above equilibrium price has no effect. D) generally aims at insuring that landlords receive a higher rent than would otherwise be the case.

A major problem in developing an activist policy is

A) uncertainty about the magnitude of the dynamic multiplier. B) uncertainty about the length and variability of policy lags. C) uncertainty about the costs of various policies. D) All of the above are correct.