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:

Fillister

A type of screw or bolt with a cylindrical head having a slightly domed top surface.

Machine Screws

Fasteners designed to hold together parts of a machine, having a threaded shaft and typically driven into pre-tapped holes.

Oval

A geometric shape resembling a flattened circle, characterized by having a single continuous line without corners.

Bolt Thread Pitch

Describes the distance between threads on a bolt, important for the compatibility and strength of connections.