The Outcome of Monetary Policy Can Never Be Certain Because

question 5

Multiple Choice

The outcome of monetary policy can never be certain because

• A) unemployment is always changing
• B) the concept of a natural rate of unemployment is still not accepted by all policy makers
• C) the slope of the AS curve is never clear
• D) time lags disrupt policy planning
• E) the natural rate of unemployment lags behind the actual rate of unemployment.

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Definitions:

Collective Bargaining

The process in which workers, through their unions, negotiate with their employers on terms of employment, including wages, hours of work, working conditions, and benefits.

Negotiations

The process by which two or more parties discuss and attempt to reach a mutual agreement on matters of common interest.

Job Security

The likelihood or assurance a person has that they will be able to continue their employment without risk of becoming unemployed.

Industrial Union

A labor union organizing method where all workers in the same industry are organized into the same union, regardless of skill or trade.