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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.
Q. Aggregate demand in the IS-LM model? Aggregate demand Aggregate demand depends on Y and R in the IS-LM model As investments depend on R
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