Negative Supply Shocks Confront the Fed with a Dilemma Because

Multiple Choice

Negative supply shocks confront the Fed with a dilemma because

A) full employment is no longer possible
B) the costs of fulfilling one objective are paid in terms of failure to meet the other
C) inflation cannot be prevented considering the reduced supply
D) all policy choices are equally undesirable
E) such shocks are entirely unpredictable