Which of the following statements is true?
A) Price controls strengthen the functioning of the invisible hand.
B) Price controls weaken the functioning of the invisible hand.
C) Price controls always benefit buyers and make sellers worse off.
D) Price controls always benefit sellers and make buyers worse off.
B
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How does an expansionary monetary policy affect aggregate expenditures according to the bank lending channel?
What will be an ideal response?
The resource market is important from a macroeconomic perspective because
a. it coordinates the allocation of productive resources and determines the costs of production. b. it determines the interest rates faced by borrowers and lenders. c. inflation rates are set in the resource market by the government. d. resource prices determine the position of the long-run aggregate supply curve.