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vredina [299]
2 years ago
8

Identify how each of the scenarios affects short‑run aggregate supply.

Social Studies
1 answer:
Andrews [41]2 years ago
3 0

Answer:

a. decrease

b. increase

c. increase

d. no change

Explanation:

A higher minimum wage increases labor costs for the firm and <u>aggregate supply decreases.</u>

An increase in productivity caused by the Internet <u>increases the aggregate supply curve.</u>

A decrease in taxes paid by firms reduces operating costs and causes the <u>aggregate supply curve to increase.</u>

If businesses anticipate a recession, the <u>aggregate supply curve decreases</u> as firms cut production levels.

A decrease in the personal income tax rate paid by households has no impact on aggregate supply; this would impact aggregate demand.

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