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OpenStudy (anonymous):
How to graph the effects of government raising the minimun wage?
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OpenStudy (anonymous):
If the minimum wage is increased, then the price of the resource labour will rise. This will shift the aggregate supply curve to the left. Since it will be more costly to hire workers, firms will lay off more of them on a strike. The umeployment rate will rise. At the same time there will be less goods and services produced as output by these firms.
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