Economic Growth & Development: The Challenge off Economic Development

Question 1

Perspective of long run aggregate supply, if a government lowers the marginal tax rate.

Answer 1

The short run AS curve will shift right.

Question 2

Government decides to apply lower levels of environmental regulations

Answer 2

The short run a AS curve shift right, and output will go up.

Question 3

Government decides to apply lower levels of environmental regulations

Answer 3

Cost of production will go down, and output will go up