If a Minimum Wage Law Is Passed Imposing a Price

Multiple Choice

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:

A) ​Increase; increase.
B) ​Increase; not change.
C) ​Not change, increase.
D) ​Do none of the above.