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Suppose the government passes a new law providing companies with low-cost alternative energy sources such as solar and wind. This would lead to a(n): a) increase in aggregate demand b) decrease in aggregate
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Suppose the government passes a new law providing companies with low-cost alternative energy sources such as solar and wind. This would lead to a(n):

a) increase in aggregate demand

b) decrease in aggregate demand

c) increase in aggregate supply

d) decrease in aggregate supply

User Bonik
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1 Answer

9 votes
C. Increase in aggregate supply

Investments may increase over time, and we need to consider the incentives created with the law
User CWBudde
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