Final answer:
A price ceiling set above the equilibrium price will not significantly affect market dynamics or create excess demand, whereas one set below can cause shortages. Imposing unrealistic market goals, like zero percent unemployment, is inconsistent with market forces.
Step-by-step explanation:
The phrase needed to complete the student's question is 'Price Ceiling.' A price ceiling is an imposed limit by the government on how high a price can be charged for a product, commodity, or service. If the price ceiling is set above the equilibrium price, where demand meets supply, it will not result in excess demand and the market can often absorb it without much impact. However, when the price ceiling is set below the equilibrium price, it can lead to shortages as the quantity demanded exceeds the quantity supplied at that lower price.
For example, if a price ceiling is instituted for a good at a level higher than the current market equilibrium, this will not alter the market behavior significantly. But, if set below the equilibrium level, it can prevent the market from clearing, resulting in less quantity supplied than demanded, creating a shortage. Moreover, a market aiming for unrealistic goals such as zero percent unemployment may encounter difficulties because such goals conflict with the natural dynamics of market forces.