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The government reduces the minimum nominal wage

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Reference no: EM131587009

Explain whether the following government policies affect the AD -curve or the SR -AS curve and how;

a) The government reduces the minimum nominal wage.

b) The government increases Temporary Assistance to Needy Families (TANF) payments, government transfers to families with dependent children.

c) To reduce the budget deficit, the government announces that households will pay much higher taxes beginning next year.

d) The government reduces military spending.

Reference no: EM131587009

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