When the price level falls, businesses are unable to sell their products at a price high enough to cover costs they have already incurred, putting producers at risk of failure
Answer:
I think the answer is D
Explanation: I hope you have/had an amazing day!!!
Answer:
Through regulation, taxation, subsidies and enforcing the antitrust laws.
Explanation:
According to Samuelson and other modern economists, governments have four main functions in a market economy — to increase efficiency, to provide infrastructure, to promote equity, and to foster macroeconomic stability and growth.
The government tries to combat market inequities through regulation, taxation, and subsidies.
Examples of this include breaking up monopolies and regulating negative externalities like pollution. Governments may sometimes intervene in markets to promote other goals, such as national unity and advancement.
One way we do this is by enforcing the antitrust laws. ... But competition can only thrive if firms respect the antitrust laws, which are the rules of the free market. When businesses break those rules—such as by agreeing to fix prices—they effectively steal from consumers and harm the economy.
