If Government Legislation Requires Businesses to Switch to a Different

Multiple Choice

If government legislation requires businesses to switch to a different method of production that generates 50 percent fewer greenhouse gas emissions, compliance to this policy (assuming no other changes) can be illustrated in the Solow model by ______ the aggregate production function that leads to a ______ level of real GDP per person.

A) a shift up of; higher
B) a shift down of; lower
C) a movement to the right on; higher
D) a movement to the left on; higher