If policy makers believe that the equilibrium wage rate is too ...

[mckennatimberlake]

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

[frejo]

Answer to Question 1

C

Answer to Question 2

FALSE

[mckennatimberlake]

Excellent

[bulacsom]

Thanks for the timely response, appreciate it