Minimum Wage Laws Contribute to Structural Unemployment By

question 108

Multiple Choice

Minimum wage laws contribute to structural unemployment by:

• A)keeping wages above the market-clearing level.
• B)keeping wages below the market-clearing level.
• C)allowing unemployed workers to search longer or less intensively for jobs.
• D)forcing unemployed workers to take the first job offered to them.

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Definitions:

Aggregate Demand Curve

A curve that shows the total demand for goods and services within an economy at various price levels, typically illustrating an inverse relationship between price level and output demanded.

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, affecting purchasing power and inflation.

Real GDP

The total value of all goods and services produced within a country in a specific period, adjusted for inflation, reflecting the actual productivity of an economy.