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

question 90

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
• E)with carefully planned and announced changes in policy only

---

Definitions:

Header Button

A control in software that allows users to configure or modify the header section of a document or table.

Page Layout View

A view in document editing software that displays the document as it would appear on the printed page, including margins, headers, and footers.

Misspelled Word

A word that is not spelled correctly according to the standard spelling conventions of its language.

Margins Button

A feature in document and publication design software that allows users to adjust the space between the text and the edge of the paper.