1. What is NAIRU? Why is it important, but challenging for economic policy makers? 2. What is the neutral rate? Why is it critical to monetary policy?  What makes it a difficult concept to work with? 3. What is the best way to measure the size of the national debt?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 28CTQ: We learned that changes in exchange rates and the corresponding changes in the balance of trade...
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1. What is NAIRU? Why is it important, but challenging for economic policy makers?

2. What is the neutral rate? Why is it critical to monetary policy?  What makes it a difficult concept to work with?

3. What is the best way to measure the size of the national debt? 

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