Author Question: If a price ceiling of 4.00 per gallon is imposed on gasoline, and the market equilibrium price is ... (Read 73 times)

ahriuashd

  • Hero Member
  • *****
  • Posts: 535
If a price ceiling of 4.00 per gallon is imposed on gasoline, and the market equilibrium price is 4.50, then the price ceiling is a binding constraint on the market.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following is an appropriate fiscal policy response to high inflation?
 a. increase interest rates
 b. increase government purchases
  c. decrease taxes
 d. none of the above



cdmart10

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

True

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

For a complete list of videos, visit our video library