Multiple Choice
In a story from HYPERLINK "http://www.ft.com/" www.ft.com (1/31/2005) describing Ireland's transformation to a prosperous economy it was noted that "Ireland's story is unique: a small, English- speaking, non- industrialised country on the edge of Europe was able to secure structural funds from the EU, cut taxes, deregulate than its neighbours and attract lots of foreign companies in the process." As these policies were implemented investment steadily increased in Ireland and potential GDP increased.
These changes would be shown as
i. rightward shifts of the AD curve
ii. leftward shifts of the SAS curve
iii. rightward shifts of the LAS curve
A) i and ii only.
B) ii and iii only.
C) i and iii.
D) i, ii and iii.
Correct Answer:

Verified
Correct Answer:
Verified
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