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The Country of Timbuktoo Is Introducing a Minimum Wage for the First

Question 72

Multiple Choice

The country of Timbuktoo is introducing a minimum wage for the first time in its history.It is above the market-clearing wage rate for unskilled workers.The effect of the minimum wage would be to


A) reduce the equilibrium real wage rate.
B) reduce the level of output.
C) shift the labour demand curve to the right.
D) shift the labour supply curve to the left.

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