In Macroland,a Country That Operates According to Okun's Law,potential GDP

question 15

Multiple Choice

In Macroland,a country that operates according to Okun's law,potential GDP equals $10 trillion,actual GDP is $9.6 trillion,and the actual rate of unemployment is 8%.What is the natural rate of unemployment in Macroland?

• A) 4%.
• B) 5%.
• C) 6%.
• D) 7%.
• E) 8%.

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Definitions:

Type B Orientation

Type B Orientation describes individuals characterized by less competitive, more relaxed, and less stress-driven behavior patterns in comparison to Type A individuals.

Impatience

A disposition toward being quickly irritated or provoked by delays or obstacles.

Perfectionism

A personality trait characterized by striving for flawlessness and setting excessively high performance standards, accompanied by overly critical self-evaluations.

Illusory Promise

A statement that appears to be a promise but does not actually bind the party to any commitment or obligation.