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Policy seeks to increase the pay of the employed and reduce the unemployment. Increasing pay increases unemployment in principle, but the the bond between the t
by Arnt 8y ago
Policy seeks to increase the pay of the employed and reduce the unemployment. Increasing pay increases unemployment in principle, but the the bond between the two is fickle and difficult to predict. Sometimes it's an extremely weak bond, sometimes it's strong. Its precise strength is difficult to pin down even with hindsight.