Goverment Regulation
Creates a cost compliance = SRAS <
Deregulation reduces compliance cost = SRAS >
Full employment
equilibrium exist where AD intersects SRAS & LRAS
Wednesday, March 2, 2016
Taxes and Subsities
Taxes($ to government) on business increase per unit production cost SRAS ⬅ subsidies from government to business reduce per unit production cost SRAS
Goverment Regulation
Creates a cost compliance = SRAS <
Deregulation reduces compliance cost = SRAS >
Full employment
equilibrium exist where AD intersects SRAS & LRAS
Goverment Regulation
Creates a cost compliance = SRAS <
Deregulation reduces compliance cost = SRAS >
Full employment
equilibrium exist where AD intersects SRAS & LRAS
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