If the minimum wage increased, then at any given rate of inflation
A)both output and employment would be higher.
B)neither output nor employment would be higher.
C)output would be higher and unemployment would be lower.
D)output would be lower and unemployment would be higher.

Question

Quizplus · Accepted Answer

An increase in the minimum wage can lead to higher production costs for businesses, which might reduce their demand for labor, leading to higher unemployment and potentially lower output as businesses adjust to increased labor costs.

If the Minimum Wage Increased, Then at Any Given Rate