If the Government of Econia Raises the Minimum Wage, What

question 129

Multiple Choice

If the government of Econia raises the minimum wage, what impact will this have on the average price level and output level of the country?

• A) It will shift the short-run aggregate supply curve to the left, leading to a higher price level and lower output.
• B) It will shift the short-run aggregate supply curve to the right, leading to a lower price level and higher output.
• C) It will shift the short-run aggregate supply curve to the left, leading to a lower price level and higher output.
• D) It will shift the short-run aggregate supply curve to the right, leading to a higher price level and lower output.

---

Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept developed in early infancy.

Ambivalent Attachment

A type of insecure attachment characterized by mixed feelings of dependence and exploration; the child may both seek and resist closeness.

Secure

The state of being free from danger or threat, or the assurance that information, resources, or possessions are protected against loss, damage, or unauthorized access.

Avoidant

Relating to behavior characterized by the desire to avoid particular situations or stimuli, often due to fear or anxiety.