The "work effort argument" criticizing traditional economic analyses of the minimum wage implies
A. any increase in the nominal minimum wage reduces short-run aggregate supply.
B. increased real GDP should result from any increase in the nominal minimum wage.
C. increased real GDP should result from any reduction in the nominal minimum wage.
D. reduced real GDP should result from any increase in the nominal minimum wage.
Answer: B
You might also like to view...
A corporation can elect to divide corporate profits into either dividends or retained earnings.
Answer the following statement true (T) or false (F)
Refer to the figure below. Assume demand remains unchanged at D1. If supply shifts from S1 to S2, then the equilibrium price will ________ and the equilibrium quantity will ________. 
A. fall; fall B. fall; rise C. rise; fall D. rise; rise
A government budget deficit is
A) an excess of government spending over government revenues during a given time period. B) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. C) the total value of all outstanding federal government securities. D) all federal government debt irrespective of who owns it.
Commitment devices can be:
A. a tool to help people avoid temptation. B. an informal arrangement. C. formal policies set up through an employer or third party. D. All of these statements are true.