-Refer to Exhibit 9-5

Multiple Choice

-Refer to Exhibit 9-5.Assume that the economy starts off at point A on graph (2) with an effective minimum wage law in place.After inflation erodes the purchasing power of the minimum wage and eliminates the constraining influence of the minimum wage law on the unskilled labor market,the economy is likely to move to a point such as

A) B.
B) G.
C) F.
D) C.
E) None of the above,because the minimum wage has no influence on the amount of goods produced.