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Mike Has Just Graduated from College and Is Now Looking

question 83

Multiple Choice

Mike has just graduated from college and is now looking for a job, but has not yet found one. This causes the unemployment rate to ________ and the labor-force participation rate to ________.


Definitions:

Price Ceiling

Legislation or regulation that sets the maximum legal price a seller can charge for a product or service to prevent market prices from rising above a certain level.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Surplus

is an economic situation in which the quantity of a good supplied exceeds the quantity demanded at the current price, often leading to a decrease in prices.

Supply Determined

Refers to market situations where the quantity of products available in the market is primarily dictated by the supply side factors such as production capacity and inventory levels rather than by consumer demand.

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