Assume that the economy is initially operating at the natural level of output. An increase in the minimum wage will cause:

Select one:

a.an increase in the real wage in the medium run.

b.a reduction in the real wage in the medium run.

c.ambiguous effects on the real wage in the medium run.

d.no change in the nominal wage in the medium run.

e.no change in the real wage in the medium run.