Asked Nov 23, 2019

 How is the aggregate supply curve affected by (a) minimum wage laws and (b) Social Security payroll taxes and retirement benefits?


Expert Answer

Step 1

Aggregate Supply: It refers to the total output produced in the economy within a given period at given prices.

Step 2

(A) Minimum wage laws

With the implementation of minimum wage laws, the firms cannot pay their workers less than the minimum wage and as a result, firm hires less labor at high wage ...

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