Businesses Successfully Lobby Congress into Passing Legislation That Eliminates the Minimum

question 30

Multiple Choice

Businesses successfully lobby Congress into passing legislation that eliminates the minimum wage law.The impact of this change would:

• A)Shift the short-run aggregate supply curve to the left
• B)Make the long-run aggregate supply curve less vertical
• C)Shift the short-run aggregate supply curve to the right
• D)Make the short-run aggregate supply curve horizontal

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Definitions:

External Decision Makers

Individuals or entities outside of a company that use its financial information to make decisions, such as investors and creditors.

International Financial Reporting Standards (IFRS)

A set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but retained by the company for reinvestment.