Question: In some countries, price controls exist on some goods, which set maximum prices at which these goods can be sold. Indeed, Canada experienced a period
In some countries, price controls exist on some goods, which set maximum prices at which these goods can be sold. Indeed, Canada experienced a period of wage and price controls in the 1970s, under the Anti-Inflation Board. Sometimes the existence of price controls leads to the growth of black markets, in which goods are exchanged at prices above the legal maximums. Carefully explain how price controls present a problem for measuring GDP and for measuring the price level and inflation.
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