If the minimum wage law is repealed and employers begin using ...

[jwb375]

If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, it would ___ unemployment and ____ the natural rate of unemployment:
 a. Increase; increase.
 b. Increase; not change.
  c. Decrease; decrease.
 d. Decrease; not change.

Question 2

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:
 a. Increase; increase.
 b. Increase; not change.
  c. Not change, increase.
  d. Do none of the above.

[efwsefaw]

Answer to Question 1

c

Answer to Question 2

a

[jwb375]

Thanks for the timely response, appreciate it

[Liddy]

Excellent