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:

Flash Drive

A portable storage device that uses flash memory and can be connected to a computer through a USB port.

Executable File

A type of computer file that, when opened, instructs the operating system to perform specific actions or run a program.

Nonvolatile

Referring to a type of computer memory that retains data even when the power is turned off.

ROM

Read-Only Memory, a type of non-volatile storage that is used to store firmware or software that is rarely changed or updated.