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To help fight climate change and reach zero carbon emissions by the year 2050, the Biden administration is imposing new environmental regulations on manufacturing firms

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To help fight climate change and reach zero carbon emissions by the year 2050, the Biden administration is imposing new environmental regulations on manufacturing firms (e.g., using solar and wind as energy sources, eliminating carbon emissions into the atmosphere, eliminating fossil fuels as an energy source). This is expected to add an estimated $201 billion to production costs over the next five years. Aggregate Demand no change = 0, up = I, down = 2 Aggregate Supply no change = 0, up = 1, down = 2 Price Level indeterminant = 0, up = 1, down = 2 Level of Output indeterminant - 0, up = 1, down = z Nominal Interest Rates indeterminant = 0, up = I, down = 2

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