For this question, assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause
A) an increase in the natural level of output.
B) a reduction in the natural level of output.
C) no change in the natural level of output.
D) an increase in the natural level of employment.
B
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Which of the following changes aggregate supply and shifts the aggregate supply curve? i. change in the price level ii. change in potential GDP iii. change in the money wage rate
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
A creditor nation means a nation
A) whose exports exceed its imports. B) whose current account is larger than its capital account. C) whose current lending to the rest of the world exceeds its borrowing from the rest of the world. D) who through its history has invested more in the rest of the world than other countries have invested in it.