Suppose you were to hear a politician defend the minimum wage on the grounds that the low-wage workers would spend more of their extra income that wealthier employers would and therefore the effect would be positive, you would know this person to be relying on the ____ argument.

Question

Quizplus · Accepted Answer

The argument presented by the politician is a macroeconomic argument which suggests that increasing the minimum wage will have a positive effect on the overall economy by increasing aggregate demand.

Suppose You Were to Hear a Politician Defend the Minimum