medium · GMAT Verbal

Argument: **Some economists argue that increasing the minimum wage leads to higher unemployment because firms cannot afford the increased labor costs.** However, recent data from several states shows that modest increases in the minimum wage were followed by a net increase in total employment.

This suggests that the increased spending power of low-wage workers can stimulate enough economic demand to offset the costs to firms. **Therefore, policymakers should consider targeted minimum wage increases as a tool for economic growth.** What is the role of the two boldface portions?

  1. The first and second are both premises that support the same final claim.
  2. The first is background information; the second is a premise for a different argument.
  3. The first is the main conclusion; the second is evidence supporting it.
  4. The first is a position the author opposes; the second is the author's main conclusion.
  5. The first is an opposing position the author ultimately accepts; the second is evidence the author uses to support that accepted position.

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