6   Assuming the economy is initially at LR equilibrium, suppose in response to international energy issues the US government temporarily decreases environment regulations facing firms. This regulatory change is set to expire after two periods. Such a shock will shift the ______.   A. DAD inward   B. DAD outward   C. DAS outward

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter10: Aggregate Supply
Section: Chapter Questions
Problem 4.6P
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Assuming the economy is initially at LR equilibrium, suppose in response to international energy issues the US government temporarily decreases environment regulations facing firms. This regulatory change is set to expire after two periods. Such a shock will shift the ______.

 

A. DAD inward

 

B. DAD outward

 

C. DAS outward

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