Q1. Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4. If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity?
Q2. In the article "A Perspective on Inflation Targeting", Ben Bernanke dispute to facilitate the depth of the 1973-75 recessions was reason only in part by amplify in oil prices per sec. Does the aggregate demand-aggregate supply model support Bernanke's thesis?