Based on Our Understanding of the Labour Market Model, We

Multiple Choice

Based on our understanding of the labour market model, we know that a decrease in the minimum wage will cause:

A) no change in the natural rate of unemployment.
B) an increase in the real wage demanded by workers.
C) an increase in the natural rate of unemployment.
D) no change in the real wage demanded by workers.
E) a decrease in the real wage demanded by workers.