Question

Some say environmental regulations on businesses make production more costly. Others argue that these regulations, though costly, also make producers look for opportunities to reduce waste in production processes and might result a cleaner environment and better production processes. If this second point of view is correct, how do new regulations affect the economy?

Answer 1

A. Regulations will have an indeterminate effect on output and price levels.
B. Regulations will increase aggregate supply.
C. Regulations will lead to lower price levels without reducing output.
D. Regulations will increase aggregate demand.
E. Regulations will lead to increased output without increasing the price level.

Answer 2

Wow, so many good options... @marylou004

Answer 3

I think it would be A-C-E. One of the three.

Answer 4

I picked A

Answer 5

OK, I hope I was helpful, Laters!

Answer 6

Thanks!