If a binding minimum wage is implemented in an economy, we can expect _______ to decrease, resulting in _____ price levels. (HINT: this is a question about the macroeconomy; which aspect of the macroeconomy is most affected by nominal wages?) Aggregate supply; higher Aggregate supply; lower Potential GDP; higher Potential GDP; lower

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
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If a binding minimum wage is implemented in an
economy, we can expect
to decrease,
resulting in ___ price levels. (HINT: this is a
question about the macroeconomy; which aspect of
the macroeconomy is most affected by nominal
wages?)
Aggregate supply; higher
Aggregate supply; lower
Potential GDP; higher
Potential GDP; lower
Transcribed Image Text:If a binding minimum wage is implemented in an economy, we can expect to decrease, resulting in ___ price levels. (HINT: this is a question about the macroeconomy; which aspect of the macroeconomy is most affected by nominal wages?) Aggregate supply; higher Aggregate supply; lower Potential GDP; higher Potential GDP; lower
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