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respond to a higher wage by increasing the labor supply

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  • Maximum wage — A maximum wage, also often called a wage ceiling, is a legal limit on how much income an individual can earn.[1] This is a related economic concept that is complementary to the minimum wage used currently by some states to enforce minimum… …   Wikipedia

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  • Stagflation — is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time. cite book last = Blanchard first = Olivier title = Macroeconomics edition = 2nd ed. pages = p. G8 publisher =… …   Wikipedia

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