Recognizing that there may be both positive and negative effects, how will our country’s GDP and price level be affected by each of the events below? Demonstrate this in a diagram.

a) Effective from July 1, 2016, the monthly minimum wage is increased from RM900 to RM1,000 for peninsular Malaysia and from RM800 to RM920 for Sabah, Sarawak and Labuan. Explain if this falls under AS or AD, curve shifting to the left/right with a diagram.

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Recognizing that there may be both positive and negative effects, how will our country’s GDP and price level be affected by each of the events below? Demonstrate this in a diagram.

a) Effective from July 1, 2016, the monthly minimum wage is increased from RM900 to RM1,000 for peninsular Malaysia and from RM800 to RM920 for Sabah, Sarawak and Labuan. Explain if this falls under AS or AD, curve shifting to the left/right with a diagram.

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