Minimum wage up to 6.50 an hour A million workers in the U.K. will receive their first

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Minimum wage up to £6.50 an hour A million workers in the U.K. will receive their first real wage rate rise in six years. The national minimum wage will increase by 19p an hour to £6.50, the government has announced.

Source: BBC, 12 March 2014 Think about the U.K. minimum wage:

How can this rise in the minimum wage lead to job rationing?

What kind of unemployment is created by job rationing?

What effect does a rise in the minimum wage have on the natural unemployment rate?

Does a rise in the minimum wage have any effect on potential GDP?

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Related Book For  book-img-for-question

Foundations Of Macroeconomics

ISBN: 9780691179261

7th Global Edition

Authors: Bade, Robin;Parkin, Michael

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