The minimum wage is a
A) possible cause of job search because it lowers wages below their equilibrium.
B) possible cause of job rationing because it lowers wages below their equilibrium.
C) government established highest wage that is legal to pay.
D) possible cause of job rationing because it raises wages above their equilibrium.
E) factor that decreases unemployment because fewer people search for work if the minimum wage is increased.
Correct Answer:
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A) mandated by law.
B) set