-In the Graph Above,the Equilibrium Price Is Regulated to Equal

question 13

Multiple Choice

-In the graph above,the equilibrium price is regulated to equal P*.This price is a

• A)Price ceiling and the market will have a shortage.
• B)Price floor and the market will have a shortage.
• C)Price ceiling and the market will have a surplus.
• D)Price floor and the market will have a surplus.

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Definitions:

Cyclical Unemployment

This refers to unemployment that occurs due to fluctuations in the economy, often increasing during a recession and decreasing during an economic expansion.

Unemployment Rate

The fraction of the working population that is not employed and is on the lookout for work.

Recovery

The phase of the business cycle in which economic activity picks up and the economy begins to grow after a recession.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, including periods of expansion and contraction.