If the Government Reduced the Minimum Wage and Pursued Contractionary

question 119

Multiple Choice

If the government reduced the minimum wage and pursued contractionary monetary policy, then in the long run

• A)both the unemployment rate and the inflation rate would be lower.
• B)the unemployment rate would be lower and the inflation rate would be higher.
• C)the unemployment rate would be higher and the inflation rate would be lower.
• D)the unemployment rate and the inflation rate would be higher.

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Definitions:

Distribution

The process by which goods, services, or resources are delivered or spread over an area or among a population.

Metabolism

The chemical processes that occur within a living organism to maintain life, involving the conversion of food to energy and new materials.

Excretion

The process by which the body removes waste products of metabolism and other non-useful materials.

Urticaria

A skin condition commonly known as hives, characterized by red, itchy, raised welts on the skin's surface that may result from allergic reactions or other causes.