If the real wage is $20 an hour, a labour Question 33 options: shortage occurs and the real wage rises. surplus occurs and the real wage rises. shortage occurs and the real wage falls. surplus occurs and the real wage falls.
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If the minimum wage is set A. equal to the equilibrium wage, it will create a shortage of labor. B. equal to the equilibrium wage, it will create a surplus of labor. C. below the equilibrium wage, it will create unemployment. D. below the equilibrium wage, it will create a shortage of labor. E. above the equilibrium wage, it will create unemployment.
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Imagine that minimum wage goes up to $20/hour in your town. How will this impact the people (suppliers of labor) and businesses in town (demanders of labor)? Use at least two of the following terms in your answer: Shift in supply Price floor Equilibrium Shift in demand
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