Problem #1: Looking at the AD Curve & the SRAS Curve (Chapter 12) Explain whether the following government policies affect the aggregate demand curve or the short-run aggregate supply curve and how. Stick to describing what happens in the short run (Ignore the long run) a. The government reduces the minimum nominal wage. b. The government increases Temporary Assistance for 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 ye Wimint Year! d. The government reduces military spending