Changes in the aggregate supply curve, equilibrium level of output, and the price level.
Elucidate what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
a) Congress increases the statutory minimum wage.
b) Oil prices drop to $12 per barrel.
c) a new computer virus disables 40 million personal computers
d) Development of new solar technologies cause energy prices to plummet.
e) Crop-restriction payments to farmers are eliminated.
f) Congress enacts a 25 percent investment tax credit
g) Productivity growth accelerates unexpectedly to 5 percent per year