When the government accepts AMA lobbying and sets a regulatory cap on the number of new residencies, it is regulating, and is fully culpable for doing so. Your logic basically defines the government away, treating it instead as the product of the influences acting on it.

> sets a regulatory cap on the number of new residencies

there is no regulatory cap on the number of new residencies

there is a cap on _federal funding_ for new residency slots; yes that impacts hospitals' willingness to add new positions, but it's _not_ the same as a regulatory cap