If the Government Reduced the Minimum Wage and Pursued Expansionary

question 131

Multiple Choice

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

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