In Macroland, Potential Output Equals $100 Trillion and the Natural

question 93

Multiple Choice

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then the output gap equals:

• A)−1 percent.
• B)−2 percent.
• C)1 percent.
• D)2 percent.

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Definitions:

Evolutionary Psychologists

Specialists in psychology who focus on how evolution has shaped the mind and behavior over millennia.

Genetic Predispositions

Inherent tendencies toward certain traits or conditions based on one's genetic makeup, influencing susceptibility to diseases, behaviors, and more.

Domestication

The process by which humans have altered the behavior, life cycle, or genetics of plants and animals to better serve human needs.

Universal Morality

The notion that there are fundamental ethical principles that are universally applicable to all human beings, regardless of culture or personal belief.