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Two Economists Can Agree That Raising the Minimum Wage Creates

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Essay

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.


Definitions:

FAFSA

Free Application for Federal Student Aid; a form used by students to apply for financial aid for college or graduate school in the United States.

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government in a specific tax period.

Untaxed Income

Earnings that are not subject to taxation by governmental authorities.

Assets

Resources owned by an individual or business that have economic value and can be used to meet debts or commitments.

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