Which of the following has a tendency to raise the unemployment rate?
A)implementing a minimum 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 can lead to higher unemployment if the set wage is above the equilibrium wage, as it may cause employers to hire fewer workers.

Which of the Following Has a Tendency to Raise the Unemployment