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

question 107

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) $99 trillion.
• C) $101 trillion.
• D) $102 trillion.

---

Definitions:

Pneumatic Brake Systems

Brake systems that utilize compressed air to generate the force applied to the brake pads or shoes, common in heavy-duty vehicles.

Compressibility of Air

A property of air that allows it to decrease in volume under pressure, playing a critical role in various pneumatic systems and applications.

6S/6M Highway Tractor ABS

Refers to an Anti-lock Braking System with 6 sensors and 6 modulators used on highway tractors to prevent wheel lockup during braking.

Accident Avoidance Electronics

Integrated systems in vehicles designed to prevent or reduce the severity of an accident through technologies like automatic braking, lane-keeping assist, and collision warnings.