If Expectations Are Rational, How Can Government Influence Unemployment in a Predictable

question 32

Multiple Choice

If expectations are rational, how can government influence unemployment in a predictable way?

• A)​with the normal tools, used in the normal fashion
• B)​with fiscal policy; monetary policy will not work
• C)​with monetary policy; fiscal policy will not work
• D)​with surprise changes in policy only

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Definitions:

Communication needs

The requirements necessary for effective exchange of information, including clarity, accessibility, and relevance of the communication channels and messages.

Legislators exercise

The activities undertaken by lawmakers, such as debating bills, crafting legislation, and voting, to fulfill their duties and responsibilities.

Public agencies

Governmental bodies that operate at the federal, state, or local level to provide public services and enforce laws.

Oversight

Supervision or regulatory governance intended to ensure compliance, performance, and adherence to standards within organizations.