nairu

Project Description:

(4 points) assume that the unemployment rate is 7% and gdp is $4,000 billion. what is a rough estimate of the potential gdp if the nairu is 5%?

(3 points) assume that potential gdp is growing at 3% annually. what will potential gdp be in 2 years?

(3 points) how fast will actual gdp have to grow to reach potential gdp in 2 years?
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