Author Question: If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by ... (Read 492 times)

mckennatimberlake · **on:** Jun 29, 2018

If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by legislating a minimum wage, that is, a wage

A) ceiling above the equilibrium wage.
B) ceiling below the equilibrium wage.
C) floor above the equilibrium wage.
D) floor below the equilibrium wage.

Question 2

Real GDP fluctuates from year to year but is always below potential GDP.

Indicate whether the statement is true or false