Once People Believe the RBA's Commitment to Keep Unemployment at the Natural

question 31

Multiple Choice

Once people believe the RBA's commitment to keep unemployment at the natural rate, the RBA can increase unemployment above the natural rate:

• A) in the short run, but not in the medium run.
• B) in both the short run and the medium run.
• C) in both the short run and the medium run, but only after changing peoples' expectations.
• D) in the medium run and the long run.
• E) in the medium run, but not the short run.

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Definitions:

Extreme Prejudice

Extreme prejudice refers to intense bias or hostility towards particular groups, which can manifest in aggressive discrimination, violence, or exclusionary practices.

Majority

A definable category of people who are socially advantaged.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Intentional

Actions or behaviors that are done with purpose or deliberate intent, often reflecting a specific goal or outcome in mind.