A minimum wage law creates a price (or wage) _____ and a labor _____.

From the early 1990s through 2012, the U.S

A) current account and U.S. capital and financial account were both positive. B) current account was negative. C) balance of payments exceeded the capital account. D) actual balance of payments deficit exceeded what the United States measured as the balance of payments deficit. E) capital and financial account was negative.

If rational workers and firms know that the Federal Reserve is following a contractionary monetary policy, they will expect inflation to ________ and will adjust wages so that the real wage ________

A) increase; decreases B) decrease; increases C) increase; remains unchanged D) decrease; remains unchanged