Under Conditions of Rational Expectations of Inflation

Multiple Choice

Under conditions of rational expectations of inflation,

A) the only way that government policy can affect the level of unemployment is if the policy is known in advance.
B) the only way that government policy can affect the level of unemployment is if the policy comes as a surprise.
C) the Phillips curve remains in place and unemployment will change in response to government policy changes.
D) the only way that government policy can affect the level of unemployment is if the policy is anticipated by workers, managers, savers, and investors.