According to the U.S. Bureau of Labor Statistics, the term “employed” includes all full time workers and part-time workers.

If expectations are rational, can monetary and fiscal policy makers accurately control the effects their policies have on unemployment? a. Yes, provided they announce policies in advance

b. Yes, both policies are effective in altering unemployment in the desired ways. c. No, because these effects depend on whether and to what extent people are fooled by those policies. d. No, only fiscal policy can alter unemployment.

Which of the following is one source of disagreement between economists?

a. Some facts about the economy are unknown. b. Economists differ in their political persuasions. c. Economic theory may not always give an unambiguous answer to a question. d. Solving one problem may make another problem worse. e. All of the above are correct.