Once People Believe the Fed's Commitment to Keep Unemployment at the Natural

question 2

Multiple Choice

Once people believe the Fed's commitment to keep unemployment at the natural rate,the Fed can reduce unemployment below the natural rate

• A)in both the short run and the long run.
• B)in both the short run and the long run, but only after changing peoples' expectations.
• C)in the long run, but not the short run.
• D)in the short run, but not in the long run.
• E) none of the above

---

Definitions:

Drug-Induced Psychosis

A condition where the use of, or withdrawal from, drugs leads to hallucinations, delusions, or confused thinking.

Psychological Dependence

A condition characterized by an emotional or mental reliance on a substance or behavior.

Physical Health

A state of physical well-being in which a person is mechanically fit to perform bodily functions without any discomfort or pain.

Narcotics Problem

Issues related to the misuse and dependence on illegal or prescription drugs with narcotic effects, often leading to addiction and various social, psychological, and health problems.