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The answer to the final question is emphatically yes. But Friedman had a question: why is it that when the Fed expands the money supply by, say, 5 percent, all prices and wages everywhere do not go up by 5 percent as well? Furthermore, when the unemployment rate is high, wages tend to fall, in accordance with the laws of supply and demand on the labor market. Our results suggest lower-skilled workers may be vulnerable to having their hours to avoid mandates.

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Publisher: Korea Development Institute; First Edition edition (1976)


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