If a price ceiling is set above the current market clearing ...

[Anajune7]

If a price ceiling is set above the current market clearing price, then
 
  A) a surplus must immediately occur.
  B) a shortage must immediately occur.
  C) there will be incentives for black markets to develop.
  D) quantity demanded will remain equal to quantity supplied at the current market clearing price.

Question 2

A congressman states, If a government attempts to increase employment through increased government spending, all we will end up with is a higher price level. This congressman assumes that the
 
  A) aggregate demand curve is a horizontal line.
  B) aggregate demand curve is a vertical line.
  C) aggregate supply curve is a horizontal line.
  D) aggregate supply curve is a vertical line.

[jaymee143]

Answer to Question 1

D

Answer to Question 2

D

[Anajune7]

Correct answers!

[jaymee143]

Great! Please up vote