To have an effect on the market price, price ceilings must be set above the equilibrium price. ?
Answer the following statement true (T) or false (F)
False
Rationale: To have an effect on the market, price ceilings must be set BELOW the equilibrium price.
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In an effort to discover whether or not workers understand inflation, economist Robert Shiller conducted a survey. When asked about the effect of general inflation on their wages or salary, the most popular response coming from workers was,
A) "My wages usually catch up to rising prices within a year." B) "My wages have always increased by more than the rate of inflation." C) "The price increase will create extra profit for my employer.... There will be no affect on my pay." D) None of the above is correct.
When the aggregate demand curve shifts to the left, real GDP falls unless the aggregate supply curve is
A) horizontal. B) upward-sloping. C) vertical. D) upward-sloping or vertical.