If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; increases
C
You might also like to view...
Market failure occurs when:
A.) Market prices signal producers to produce the optimal mix of output. B.) The economy produces at a point on the production possibilities curve. C.) Producers supply the goods that earn the greatest profit. D.) An imperfection in the market mechanism prevents an optimal outcome.
Opportunity cost may be defined as the
A. Goods or services that are forgone in order to obtain something else. B. Dollar cost of producing a particular product. C. Dollar prices paid for final goods and services. D. Difference between wholesale and retail prices.
The real business cycle model best explains the procyclicality of the nominal money supply by
A) an unpredictable Federal Reserve. B) exogenous money. C) endogenous money. D) uncorrelated money.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise. b. Demand for real goods and services to remain the same and M2 money supply to rise. c. Demand for real goods and services to rise and M2 money multiplier to fall. d. Demand for real goods and services to rise and monetary base to remain the same.