Question

Why is there inflation and what does it have to do with minimum wage?

Answer 1

Inflation in nothing but fal;l in the value of the currency and this is primary existing in the market because of the money supply that is indeed more than the required amount and this excess circulation in the market is the prime reason for inflation. Consider there is a minimum wage of x and if the inflation is increasing in the economy, then the real minimum wage should get to reduce all in all and in order to compensate that the minimum wage should increase with increase in price level all in all..