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.

Contractionary Monetary Policy

Monetary policy measures undertaken by a central bank to reduce inflation and slow down economic growth by decreasing the money supply or increasing interest rates.

Minimum Wage

The lowest remuneration that employers can legally pay their workers, a rate which is set by government legislation.

Unemployment Rate

The segment of the labor force currently without employment but making efforts to find work.