Companies requiring them re-fit their operations

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Reference no: EM131682009

Technical model usage: The Australian government imposes a new mandate on all companies requiring them re-fit their operations with a government approved device that monitors each company's electricity use and automatically reports if it exceeds the new monthly kilowatt usage set by the government regulator (with possible fines being imposed for violations of targets). Use a dynamic AD-AS model that incorporates LRAS and SRAS to show just the initial ceteris paribus effects of this mandate on the macroeconomy. Explain the intuition behind your answer using the Solow-Swan growth framework. Limit your answer to one page.

Reference no: EM131682009

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