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Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509

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BuyFindarrow_forward

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509
Chapter 15, Problem 4QR
Textbook Problem
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Are minimum-wage laws a better explanation for structural unemployment among teenagers or among college graduates? Why?

To determine
Whether the minimum wage is a reason for structural unemployment.

Explanation of Solution

While comparing the job-related skills, the college graduates have more skills than the teenagers. Thus, the wage level for the teenagers is lower than the minimum wage...

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