To be binding, a price ceiling must be set above the equilibrium ...

[savannahhooper]

To be binding, a price ceiling must be set above the equilibrium price.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Other things equal, contractionary fiscal policy will lead to:
 a. an increased budget deficit (assuming an initial budget deficit).
  b. a reduced budget surplus (assuming an initial budget surplus).
  c. an expanded budget surplus (assuming an initial budget surplus).
  d. increased government purchases.

[bookworm410]

Answer to Question 1

False

Answer to Question 2

c