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Many politicians think that the minimum wage should remain low to incentivize more hiring and increase real GDP. Is this an accurate picture of how
Many politicians think that the minimum wage should remain low to incentivize more hiring and increase real GDP. Is this an accurate picture of how the macroeconomy operates? a.No, because low wages can decrease inflation leading to depressed growth rates b.Yes, because low wages increase corporate profits leading to even more job creation c.Yes, because low wages incentivize workers to work harder and to supply more hours d.No, because low wages decrease aggregate demand leading to lower real GDP
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