If the government of Econia raises the minimum wage, what impact will this have on the average price level and output level of the country?
A) It will shift the short-run aggregate supply curve to the left, leading to a higher price level and lower output.
B) It will shift the short-run aggregate supply curve to the right, leading to a lower price level and a higher output.
C) It will shift the short-run aggregate supply curve to the left, leading to a lower price level and a higher output.
D) It will shift the short-run aggregate supply curve to the right, leading to a higher price level and lower output.
Correct Answer:
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