Question

Mr. Lee received a raise at a job this year, but he finds that he has less money to spend each month. What is the most likely reason for this situation?

The supply of goods and services has risen.

Unemployment has dropped across the country.(MY ANSWER)

Inflation was greater than Mr. Lee's raise.

Answer 1

What does the unemployment of other people have to do with Mr. Lee's income and expenses?

Please re-think. And be sure to look up any words you are not 100% sure of -- and don't guess!
http://www.dictionary.com

Answer 2

you