tax-free investments are so called because the interest or other income paid to their owners is federal, and, perhaps, state tax
1 answer:
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Answer:
The AS curve shifts to left.
Explanation:
If the minimum number of paid vacation days are increased, then it will increase the benefits of labor. Labor will be interested to join the work and the supply of labor will increase, reducing the cost of production and in turn cost of goods in which the labor was used.
Such a reduction in price, in turn, will reduce the aggregate supply, and so the aggregate curve will shift to left. The diagram illustrating the situation is attached.
The AS curve shifts to left.
