If Expectations Are "Rational," Can the Fed Control Unemployment

question 115

Multiple Choice

If expectations are "rational," can the Fed control unemployment?

• A)Yes, provided it announces policy in advance.
• B)Yes, if it affects the aggregate demand curve.
• C)No, because aggregate supply is vertical even in the short run.
• D)No, because only fiscal policy can affect unemployment.

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Definitions:

IV Placement

The procedure of inserting a catheter into a vein, typically for the administration of intravenous fluids or medications.

Fluid Distribution

The process by which fluids are circulated and maintained throughout the body's tissues and organs.

Homeostasis

The ability of a living organism to maintain a stable internal environment despite changes in external conditions.

Fluid Catabolism

The process of breaking down fluids in the body, often related to the metabolic degradation of water and other molecules.