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If the Minimum Wage Is Set

Question 23

Multiple Choice

If the minimum wage is set


A) below the equilibrium wage rate, it will create unemployment.
B) equal to the equilibrium wage rate, it will create a shortage of labor.
C) above the equilibrium wage rate, it will create unemployment.
D) below the equilibrium wage rate, it will create a shortage of labor.
E) equal to the equilibrium wage rate, it will create a surplus of labor.

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