If the minimum wage is set above the equilibrium wage, then
A) more people will work than at the equilibrium wage.
B) the same number of people will work as at the equilibrium wage.
C) fewer people will want to work than at the equilibrium wage.
D) there will be fewer labor hours purchased by employers than at the equilibrium wage.
E) none of the above
D
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In the 1960s, many economists and policy makers considered the trade-off between inflation and unemployment revealed in the Phillips curve to be permanent
This belief was challenged by ________, who argued that there is no trade-off between inflation and unemployment and the long run. A) Paul Samuelson and James Tobin B) Robert Lucas and Thomas Sargent C) Finn Kydland and Edward Prescott D) Milton Friedman and Edmund Phelps
A decline in the expected inflation rate causes the demand for money to ________ and the demand curve to shift to the ________, everything else held constant
A) decrease; right B) decrease; left C) increase; right D) increase; left