Governments sometime legislate the use of price ceilings and price floors to correct market failures.There is current economic debate on whether governments should intervene in a market economy. Some free market economists are even arguing that the Australian government should abolish the current minimum wage.You are an economic policy advisor to the government, what would your recommendations be?In answering this question, make sure that you use economic principles (including graphs) and consider both sides of the story i.e. effect on wage earners, businesses and economic growth.
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