A wage subsidy provides financial support to businesses to encourage them to hire workers. This reduces the cost of hiring for the business, making it more likely that they will hire additional workers or keep existing workers on staff. This, in turn, increases the number of workers employed.

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A Wage Subsidy Will

Question 78

Multiple Choice

A wage subsidy will:

A) reduce the wages received by workers.
B) reduce the number of workers employed.
C) increase the number of workers employed.(True Answer ) Correct
D) increase the unemployment rate, especially among low-skilled workers.

Correct Answer: