The Table Below Shows Real GDP, Potential GDP and the Unemployment

question 24

Multiple Choice

The table below shows real GDP, potential GDP and the unemployment rate for a hypothetical economy. TABLE 31- 1
-Refer to Table 31- 1. What is the NAIRU in this economy?

• A)7.0%
• B)6.2%
• C)5.9%
• D)6.4%
• E)6.1%

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Definitions:

Pluton

A body of intrusive igneous rock that crystallized from magma cooling below the Earth's surface; can range in size from small to massive.

Terranes

Pieces of the Earth's crust that have distinct geological histories and have been merged onto a continent along a plate boundary.

Accretionary Prism

A wedge-shaped mass of sediment and rock scraped off the top of a downgoing tectonic plate at a convergent plate boundary.

Displaced Granitic Rocks

Granitic rocks that have been moved from their original position by geological forces, often resulting in altered landscapes.