If the Government of Econia Raises the Minimum Wage, What

Multiple Choice

If the government of Econia raises the minimum wage, what impact will this have on the average price level and output level of the country?

A) It will shift the short-run aggregate supply curve to the left, leading to a higher price level and lower output.
B) It will shift the short-run aggregate supply curve to the right, leading to a lower price level and higher output.
C) It will shift the short-run aggregate supply curve to the left, leading to a lower price level and higher output.
D) It will shift the short-run aggregate supply curve to the right, leading to a higher price level and lower output.