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

question 94

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 real GDP must be:

• A)$98 trillion.
• B)$96 trillion.
• C)$102 trillion.
• D)$104 trillion.

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Definitions:

Social Risk

The potential for an individual to experience loss or damage to their social status, relationships, or respect within a community.

Functional Risk

The potential for a product or service to fail to perform its intended purpose, causing inconvenience or loss to the consumer.

Evaluative Criteria

Standards or benchmarks used to assess the attributes or performance of an object, person, or concept for decision-making purposes.

Competing Purchase

A situation where a customer must choose between two or more competing products or services.