The "work effort argument" criticizing traditional economic analyses of the minimum wage implies
A)increased real GDP should result from any increase in the nominal minimum wage.
B)increased real GDP should result from any reduction in the nominal minimum wage.
C)reduced real GDP should result from any increase in the nominal minimum wage.
D)any increase in the nominal minimum wage reduces short-run aggregate supply.

Question

Quizplus · Accepted Answer

The "work effort argument" suggests that increasing the minimum wage can lead to higher productivity and effort from workers, potentially increasing real GDP.

The "Work Effort Argument" Criticizing Traditional Economic Analyses of the Minimum