In Macroland,potential Output Equals $100 Trillion and the Natural Rate

question 125

Multiple Choice

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

• A) - $2 trillion.
• B) - $1 trillion.
• C) $1 trillion.
• D) $2 trillion.
• E) $9 trillion.

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Definitions:

Red Streak

A line or mark on the skin that is reddish in color, often indicating inflammation or infection of lymph vessels.

Insulin Vial

A small glass bottle containing insulin, used in the treatment of diabetes by regulating blood sugar levels.

Glargine (Lantus)

A long-acting insulin analogue used to manage blood sugar levels in individuals with diabetes, providing consistent insulin activity over 24 hours.

NPH Insulin

An intermediate-acting insulin that helps control blood sugar levels in individuals with diabetes, usually having a longer onset and duration than regular insulin.