Question

Which choice BEST describes what might happen to unemployment rates, if minimum wage laws were repealed?

In the short term, unemployment rates would remain stable.
In the short term, unemployment rates would drop drastically.
In the short term, unemployment rates would rise drastically.
In the short term, unemployment rates would depend on other market
factors.

Answer 1

the short term, unemployment rates would drop drastically.

Answer 2

In the short term unemployment rates would depend on other market factors

Step-by-step explanation:

when minimum wage laws are made in congress and they are repealed by the people. it means that the status quo based on minimum wage will be maintained. the people already in the labor market will as well remain in labor market.

The repealing of the minimum wage laws by the people would affect the employers of labor either positively or negatively because the minimum wage law might be for an increase or a decrease of the minimum wage been paid by labor. hence you cannot determine how exactly the employers of labor would react to employment and unemployment hence in the short terms unemployment rates would depend on other market factors.