Use the following graph for a competitive market to answer the question below. For a price floor to be effective and alter the market situation, it must be set

Explain the linkages in the causal chain when the Fed conducts a contractionary monetary policy. What will be the ultimate effect on GDP?

The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established

A) the government must intervene to eliminate any externalities in the market. B) private transactions are efficient. C) there will be no pollution. D) Both answers B and C are correct.