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If the Median Wage Is $9 in Country X and $8

Question 71

Multiple Choice

If the median wage is $9 in country X and $8 in country Y and both countries have similar elasticities of labor supply and demand,then a minimum wage of $4 in both countries will tend to:


A) make unemployment higher in country X than in country Y.
B) make unemployment higher in country Y than in country X.
C) make unemployment the same in both countries.
D) have no effect in either country.

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