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5 November, 21:50

Suppose government imposed a minimum wage above the equilibrium wage.

a. assuming nothing else changes, what do you expect to happen to the resulting shortage of jobs as time progresses?

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  1. 5 November, 21:54
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    An increased minimum wage could result in an increased job shortage as employers struggle to make ends meet. Eventually workers with those higher paying jobs will achieve savings or debt goals and return money to the economy, thereby adding new jobs.
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