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

question 19

Multiple Choice

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 3 percent, then real GDP equals:

• A) $98 trillion.
• B) $99 trillion.
• C) $101 trillion.
• D) $102 trillion.

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Definitions:

Reward Power

The capacity to influence others' behavior by offering them positive incentives.

Coalition Building

The process of assembling a group of diverse organizations or people to pursue a common goal or address a specific issue through collaboration.

Upward Appeals

A tactic in which an individual attempts to influence a decision or receive support by appealing to higher-level superiors or authorities.

Rational Appeals

a method of persuasion that uses logical arguments and concrete evidence to convince people rather than emotions or credibility.