how does change in government policies affect supply curve?
Answers
Answered by
1
Answer:
Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies. ... From the firm's perspective, taxes or regulations are an additional cost of production that shifts supply to the left, leading the firm to produce a lower quantity at every given price.
Answered by
0
Fiscal policy affects aggregate demand through changes in government spending and taxation. Those factors influence employment and household income, which then impact consumer spending and investment. Monetary policy impacts the money supply in an economy, which influences interest rates and the inflation rate.
Similar questions