If the Government Reduced the Minimum Wage and Pursued Contractionary

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.