Recently, policy makers have debated whether an increase in the federal minimum wage, currently at $7.25 an hour, would be good for the economy. Determine how each of the given scenarios affects the Phillips curve. a. Policy makers announce that effective next week, the federal minimum wage will be $15 an hour. This will cause b. Policy makers announce that the federal minimum wage will increase to $15 an hour over the next 10 years by annual increases of $0.78. This will cause c. Explain how the initial increase in the federal minimum wage for low-wage earners could lead to a wage-price spiral throughout the economy. The increase in wages disposable income. This in turn leads to demand, which in turn results in prices.Drop down answers for part a. and b.:-a movement along the Phillips curve upward and to the right-a movement along the Phillips curve downward and to the left-no change in the Phillips curve-the Phillips curve to shift downward-the Phillips curve to shift upwardPart c.:The increase in wages (decreases/increases) disposable income. This in turn leads to (greater/falling) demand, which in turn results in (higher/lower) prices.