Which of the following has a tendency to raise the unemployment rate?
A)implementing a minimum wage in an economy
B)reducing unemployment insurance in an economy
C)offering wages at the market-clearing rate
D)reducing labour unions' membership in an economy
E)introducing programs that retrain workers displaced by technological change

Question

Quizplus · Accepted Answer

Implementing a minimum wage in an economy can raise the unemployment rate because it sets a floor on wages above the market-clearing level, potentially leading to a surplus of labor (more people are willing to work at that wage than there are jobs available).

Which of the Following Has a Tendency to Raise the Unemployment