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If the Legal Minimum Wage Is Set Above the Equilibrium

Question 25

Multiple Choice

If the legal minimum wage is set above the equilibrium wage rate


A) employment will tend to be lower than it otherwise would have been.
B) employment will tend to be higher than it otherwise would have been.
C) the level of employment will not be affected.
D) there is no way to determine how the level of employment would be affected.

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