Economy if price ceiling or price floor were removed, Macroeconomics

Assignment Help:

What is the impact on the economy if price ceiling or price floor were removed?

Ans) Price ceiling is government system or laws setting price floors or ceilings that forbid the adjustment of price to clear markets. Price ceilings make it illegal for sellers to charge more than a exact maximum price. Ceilings may be introduced when a shortage of a commodity threatens to increase its price a lot.

Related Discussions:- Economy if price ceiling or price floor were removed

Economic luxury and an economic necessity, What is the difference between a...

What is the difference between an economic luxury and an economic necessity? Ans) An economic luxury is wasting land on pools huge garden, etc. An economic requirement is what y

Explain about labor market in as-ad model, Q. Explain about Labor Market ...

Q. Explain about Labor Market in AS-AD model? In AS-AD model, economy will always be on the response curve - the thick line in chart below. Figure: The labor in the

Keynesian fiscal policy, Assume the economy has a GDP of $11,500 billion. ...

Assume the economy has a GDP of $11,500 billion. The unemployment rate is at 7.3% and has been slowly rising for the last 6 months. Inflation was at 2.3% one year ago but has sin

Explain about the circular-flow of economic activities, Explain about the c...

Explain about the circular-flow of economic activities. Circular-Flow of Economic Activities: Economic Agents: a. Households b. Firms Where they interact:

Fiscal policy in the School of rational expectations, I want a Fiscal polic...

I want a Fiscal policy in the School of rational expectations.

Wages, Subsistence theory of wage determination

Subsistence theory of wage determination

Equilibrium in the money market, Equilibrium in the money market ...

Equilibrium in the money market In the IS-LM-model, we have equilibrium in the money market when MD(Y, R) = MS This is the equation

Reserves and a reserve requirement, If the Banking system has $500,000 in d...

If the Banking system has $500,000 in demand deposit liabilities, $125,000 in total reserves and a reserve requirement of 15%: What is the maximum amount by which the money supply

Explain about nominal wage level, Q. Explain about Nominal wage level? ...

Q. Explain about Nominal wage level? In macroeconomics, we are usually not interested in the wage for a specific individual though in the average wage for all employed individu

Financial and real investment, Financial and Real Investment Financial ...

Financial and Real Investment Financial investment simply means transfer of right from one party to another. While one party has made investment, the other has made disinvestme

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages