Hector Cohen

History

1 February, 13:57

What would be the immediate impact upon the economy if the minimum wage were raised higher than worker productivity?

A) The aggregate demand would shift to the left, causing inflation.

B) The price level would increase causing an excess in aggregate supply

C) The short-run aggregate supply would shift to the left, causing inflation.

D) Employment would increase as people began returning to the labor force, cause the LRAS curve to shift left.