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:

Disrupt-then-reframe Technique

A persuasion strategy that involves presenting an unexpected element (disruption) followed by a rational argument (reframe) to persuade someone.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Scarcity Principle

A psychological and economic principle stating that limited supply of a commodity increases its demand and perceived value.

Fast-approaching-deadline Technique

A time management strategy emphasizing the urgency and priority of tasks as deadlines approach, aiming to enhance productivity.