Answer:
AS shifts left and price level would increase.
Explanation:
Aggregate supply curve shifts to the right (amount supplied increases) when there is increase in productivity in an economy. There is downward pressure on the price level.
The aggregate supply curve shifts to the left when there is a price increase of inputs. So suppliers use limited resources to buy lower input resulting in lower aggregate supply.
If Congress increases wages, suppliers will have to pay more for labor to produce goods. So the quantity supplied will decrease (AS shift to the left) and price will increase. The gift is illustrated in the attached diagram. There is a shift from Q2 to Q1