In the Rational Expectation Model, Government Control Over Aggregate Demand

Multiple Choice

In the rational expectation model, government control over aggregate demand:

A) ​gives it the power to alter real output and employment even when the effects of government policies are expected.
B) ​can affect real output in the short-run only if policies are unexpected.
C) ​has potential to change long-run real output as long as the aggregate supply curve is vertical.
D) ​has highly unpredictable effects on real output in the long run.