Many Advocates of Raising the Minimum Wage Argue That the Adverse

question 136

Essay

Many advocates of raising the minimum wage argue that the adverse effects of such a move, for example higher unemployment, are likely to be small.Suppose the minimum wage is binding.Under what conditions will an increase in the minimum wage lead to only a small increase in unemployment?

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Definitions:

Consideration

An element of a valid contract; the price one is willing to pay for the promise set out in the offer.

Guarantee

A formal assurance or promise, often related to the quality or durability of a product, or the fulfillment of a contract.

Guaranteed

Promised with certainty or underwritten with a promise of payment or performance.

Defaulted

Refers to the failure to meet a legal obligation or agreement, especially failing to make required payments on a loan.