Suppose the Minimum Wage Decreased

question 74

Multiple Choice

Suppose the minimum wage decreased. At any given rate of inflation, what would happen to output and employment?

• A) Both output and employment would be higher.
• B) Both output and employment would be lower.
• C) Output would be higher and unemployment would be lower.
• D) Unemployment would be higher and output would be lower.

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Definitions:

Reciprocal

Mutual or given and received in return; employing mutual exchange between two or more parties.

Collective

A group or assembly of individuals who share common interests, values, or goals.

Positive Psychology

The scientific study of human strengths, virtues, and factors that contribute to personal well-being and happiness, aiming to improve quality of life.

Psychologically Healthy

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make contributions to their community.