According to the Rational Expectation View, Does the Government Have

Multiple Choice

According to the rational expectation view, does the government have the ability to control the level of real output and unemployment?

A) ​Only in the SR and only if it makes unexpected changes in aggregate demand.
B) ​Only in the SR and only if it announces plans well in advance, so that expectations are affected.
C) ​Only in the LR and only if it shifts AS instead of AD.
D) ​Only in the LR and only if it uses monetary policy instead of fiscal policy.