Exhibit 9-5 -Refer to Exhibit 9-5.Assume That the Economy Starts Off at Economy

Multiple Choice

Exhibit 9-5

-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,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.