The Government Adopts a New Regulation That Requires All Firms

Multiple Choice

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation.All else the same,we would expect ________ unemployment to ________.

A) frictional; increase
B) structural; decrease
C) cyclical; decrease
D) structural; increase
E) frictional; decrease