A new government policy successfully lowers firms unit costs. What are the short-run and the long-run effects

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A new government policy successfully lowers firms’ unit costs. What are the short-run and the long-run effects of such a policy? (Assume that full employment output does not change.)

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Macroeconomics Principles and Applications

ISBN: 978-1111822354

6th edition

Authors: Robert E. Hall, Marc Lieberman

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Question Posted: Jun 09, 2018 08:39 AM

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A new government policy successfully lowers firms unit costs. What are the short-run and the long-run effects

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In the short run unit costs decrease and the AS curve shifts ...View the full answer

Macroeconomics Principles and Applications

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