Equilibrium when there is a change in environmental policy

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Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe

A. a decrease in both real output and the natural rate of unemployment.

B. a decrease in real output and an increase in the price level.

C. a decrease in real output and an increase in the natural rate of unemployment.

D. a decrease in aggregate supply and an increase in aggregate demand.

Reference no: EM13982393

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