What is the likely effect of a significant increase in minimum wage on employment levels in sectors with low profit margins and high labor costs? A. Employment levels would significantly increase. B. Employment levels would remain relatively unchanged. C. Employment levels would decrease. D. Employment levels would initially decrease but then significantly increase as the market adjusts.

What is the likely effect of a significant increase in minimum wage on employment levels in sectors with low profit margins and high labor costs? A. Employment levels would significantly increase. B. Employment levels would remain relatively unchanged. C. Employment levels would decrease. D. Employment levels would initially decrease but then significantly increase as the market adjusts.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section: Chapter Questions

Problem 4CQQ

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