Suppose the Central Bank Targets a Low Rate of Unemployment

Multiple Choice

Suppose the central bank targets a low rate of unemployment.If a negative real shock occurs,the real growth rate will be:

A) higher if the central bank counters the shock than if it does not react.
B) lower if the central bank counters the shock than if it does not react.
C) the same whether the central bank counters the shock or not.
D) higher or lower if the central bank counters the shock than if it does not react,depending on people's expectations.