Question

On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be

Answer 1

I believe they are looking for something along the lines of economic stimulus. In other words increasing minimum wage in a recession they were hoping to increase spending. If you’re giving more people more money hopefully they will have more money to spend thus stimulating the economy.