Which of the following has a tendency to raise the unemployment rate?
A)implementing a minimum wage above the market wage in an economy
B)reducing unemployment insurance in an economy
C)offering wages at the market-clearing rate
D)reducing labor union membership in an economy

Question

Quizplus · Accepted Answer

Implementing a minimum wage above the market wage can lead to an increase in labor costs for employers, causing them to reduce the number of employees or hire less frequently, thereby raising unemployment.

Which of the Following Has a Tendency to Raise the Unemployment