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Take My Advanced Macroeconomics Quiz For Me – The click of Minimum Wages It has been quite a while since I have done an advanced macroeconomics quiz, and so when I found my friend Kevin, who has been taking the same Advanced Macroeconomics quiz I had been working on, I decided I wanted to do a video on this topic. My friend Kevin does phenomenal-quality videos, and he has done a video on this topic as well. Needless to say, this topic is well worth the time. So allow us to embark on this journey together. This article will examine how minimum wages behave with regards to the price responsiveness of workers. Minimum wages as inflationists or as minimalists? Well, let’s examine some aspects of this topic in some detail. What is the effect of minimum wages on price: How does the labor market read review average respond to minimum wage changes? Which economic agent—employers or workers—respond most favorably to minimum wage changes? And now for the quiz We will start by taking a look at the minimum wage structure in today’s western economies.

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This will give us a better sense of what minimum wages do to prices of goods and services. You will then learn to calculate the effect of a significant minimum wage increase on GDP, inflation, employment, and price. Specifically, you will find that, when considered in aggregate (i.e., with regards to the population at-large), minimum wages raise the prices of goods by about 0.7 cent (2%) – 0.8 cent (3.

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5%). Though both of these are a substantial fraction of GDP, they do not translate to sizable changes in real income. However, the benefits to aggregate employment and aggregate wages exceed these effects by a very considerable margin. The effects of minimum wages on aggregate growth and price As we did in our General Equilibrium Discussion of the effects of reducing wages, we first look at the aggregate effects of a minimum wage increase. These are the aggregate GDP results for the United States (since 1938) for both real wages and aggregate employment. Data below: Figure 1: Aggregate Minimum Wages by US States in Real Wages (1938–2010) and employment (1936 to 2014) and aggregate wages and aggregate employment (1938–2012) for specific year-periods. You will learn that minimum wages help by raising both wages and employment.

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We then look at the effects of minimum wages on the level of equilibrium aggregate prices for both real wages and prices of goods. The first graph below shows the impact of increasing the minimum wage, so as to 0.7, 0.9 and 1.4 percent of GDP on aggregate real wages (2008–2014) and aggregate real prices (1935 to 2015). My data points are simple regression lines. As you can see, adding one percentage point in aggregate minimum wages changed aggregate real wages by approximately 0.

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4 percent and aggregate real prices by approximately 0.7 percent. This suggests that this translates to real income gains of about half a cent or a little less annually (that is, every year, inflation is lessened 8 cents on the dollar.) As you will see, these effects on aggregate real wages and prices are almost entirely offset by the effects of adjusting wage indexes. Since data below the graphs really matters, I will discuss that more shortly. Why does raising a minimum wage raise pricesTake My Advanced Macroeconomics Quiz For Me Noted macroeconomics professor Lawrence “Oil and Money” Williams coined the term “the world’s oldest profession”. With his expertise and vast experience, see this page claims that his answer is no.

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