The government sets a price floor for corn which is above the equilibrium price of corn. As a result, ________
A) the corn market will be efficient
B) a deadweight loss will be created
C) a shortage of corn will be created
D) none of the above answers is correct
B
Economics
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Refer to Figure 26-14. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease income taxes C) buy Treasury bills D) increase the required-reserve ratio
Economics
In traditional Keynesian economics:
a. the aggregate supply curve is vertical. b. the aggregate supply curve is horizontal. c. the aggregate supply curve is upward-sloping. d. the aggregate demand curve is horizontal. e. the aggregate demand curve is vertical.
Economics