The Proponents of Rational Expectations and Monetarism Think That the Federal

question 49

Multiple Choice

The proponents of rational expectations and monetarism think that the Federal Reserve should adopt

• A)an inflation target.
• B)a monetary aggregate target.
• C)a constant monetary growth rule.
• D)an interest rate target.

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Definitions:

Classified Unemployed

Classified unemployed refers to individuals who are without a job and have been categorized based on certain criteria, such as duration of unemployment or their reason for unemployment.

Structural Unemployment

Unemployment because (1) the skills demanded by employers do not match those of the unemployed, or (2) the unemployed do not live where the jobs are.

Skills Mismatch

A situation where the skills of workers do not match the needs of the jobs available, leading to inefficiencies in the labor market.

Unemployment Types

Categories that differentiate the reasons individuals are without employment, including cyclical, frictional, and structural unemployment.