Macroeconomics

Group:5
Members:5

Submitted to,
Dr Mohammad Sadiqunnabi Chowdhury
Professor
Dept. of Economics, SUST

Submitted by,
2021331058 TASNIM HASAN SHIMANTO (Group Co Ordinator)
2021331024 SUKHENDRA NATH DHAR
2021331038 JOY KUMAR MOHONTO
2021331094 AJOY CHAKRABARTHY
2021331106 TOIYOB ALI JUYEL
 CHAPTER PLAN
Chapter 5: Introduction to Macroeconomics

5.1 Macroeconomic activities

5.1.1. Objectives of macroeconomics
5.1.2 Instruments of macroeconomics

5.2. Major macroeconomic indicators

5.2.1. National income
5.2.2. Unemployment rate
5.2.3. Inflation rate

5.3 Macroeconomic equilibrium

5.3.1. Aggregate demand
5.3.2. Aggregate supply
5.3.3. Equilibrium

5.4 The concept of unemployment

5.4.1 Definition and types of unemployment
5.4.2 Equilibrium in the labour market

5.5 Price stability and inflation

5.5.1 Definition and types of inflation
5.5.2 Measurement of inflation

5.6 Inflation-unemployment trade-off

5.6.1 SRPC
5.6.1 LRPC
 Introduction to Macroeconomics

5.1 Macroeconomic activities

Macroeconomics:
Macroeconomics is a branch of economics that focuses on the overall performance,
structure, behavior, and decision-making of an entire economy. It explores how factors
such as interest rates, taxation, and government spending influence economic growth
and stability. Covering regional, national, and global economies, macroeconomics
analyzes key indicators like inflation, price levels, economic growth rates, national
income, gross domestic product (GDP), and unemployment trends

5.1.1 Objective of Macroeconomics

The primary goals of macroeconomics are to enhance the standard of living and ensure
stable economic growth. These goals are pursued through key objectives, including
reducing unemployment, boosting productivity, controlling inflation, and maintaining
overall economic stability.

Three main objectives of Macroeconomics :

1 .Economic growth (GDP): Economic growth refers to a nation’s ability to produce more
goods and services over time. It is generally measured through some version of gross
domestic product (GDP).

2. Unemployment reduction (Employment Growth): Employment growth refers to the

degree to which all willing and able workers can find jobs. This is generally measured
through the unemployment rate.

3. Price Stability (low inflation) : Price stability refers to minimizing changes in a nation’s
prices over time. This is generally measured with a price index.
5.1.2 Instruments of Macroeconomics
The ultimate policy objective of any country is to achieve sustainable economic growth and
development. To accomplish this, policymakers implement measures aimed at maintaining
moderate inflation, reducing unemployment, balancing foreign trade, and stabilizing
exchange and interest rates. Overall, these efforts are directed toward fostering a stable
and well-functioning macroeconomic environment.

1.Monetary policy
Monetary policy refers to the adoption of suitable policy regarding the control of money
supply and the management of credit which is an important measure for adjusting
aggregate demand to control inflation. It is concerned with the money supply, lending
rates and interest rates and is often administered by a central bank.

2.Fiscal policy
Fiscal policy involves the use of government spending, taxation and borrowing to influence
both the pattern of economic activity and also the level and growth of aggregate demand,
output and employment. It is important to realize that changes in fiscal policy affect both
aggregate demand (AD) and aggregate supply (AS). Most governments use fiscal policy to
promote stable and sustainable growth while pursuing its income redistribution effect to
reduce poverty. Fiscal policy therefore plays an important role in influencing the behavior
of the economy as monetary policy does. The choice of the government fiscal policy can
have both short and long term influences. The most important tools of implementing the
government fiscal policy are taxes, expenditure and public debt.
 5.2 Major Macroeconomic Indicators

5.2.1 National Income

The National Income is the total amount of income accruing to a country from
economic activities in a years time. It includes payments made to all resources either in
the form of wages, interest, rent, and profits.

The progress of a country can be determined by the growth of the national income of
the country.

National income are calculated from 2 parts-

1. GDP (Gross Domestic Product)

2. GNP (Gross National Product)

Gross Domestic Product:

The total value of goods produced and services rendered within a country during a year
is its Gross Domestic Product.

Further, GDP is calculated at market price and is defined as GDP at market prices.
Different constituents of GDP are:
1. Wages and salaries
2. Rent
3. Interest
4. Undistributed profits
5. Mixed-income
6. Direct taxes
7. Dividend
8. Depreciation

Gross National Product:

GNP measures the total monetary value of the output produced by a country's residents.
Therefore, any output produced by foreign residents within the country's borders must
be excluded in calculations of GNP, while any output produced by the country's residents
outside of its borders must be counted.

It also includes net income arising in a country from abroad. Four main constituents of
GNP are:
1. Consumer goods and services
2. Gross private domestic income
3. Goods produced or services rendered
4. Income arising from abroad
5.2.2 Unemployment Rate
1. Unemployment
Unemployment refers to a state where a person is actively seeking for a job but is
unable to find one. The most used measure of unemployment is unemployment rate.

2. Unemployment Rate
Unemployment rate is defined as the percentage of unemployed people in the total
labor force. It is calculated by dividing the number of unemployed people by the
number of people in the labor force.

Unemployment Rate, UR = U / LF

It’s a major macroeconomics indicator that represents the current economic condition
of a country. When the economy is in poor shape and jobs are scarce to find, the
unemployment rate can rise. When the economy grows at a healthy rate and jobs are
available, it can be expected to fall.

3. Labor Force
The primary definition of labor force is the aggregate amount of people that are
employed or who are actively seeking for a job. So,
Labor Force, LF = Unemployed + Employed

Note: People who are neither employed nor seeking for a job are not a part of the
labor force.

Fig 1: People in labor force Fig 2: People not in labor force

The type of people that are not in Labor Force:

1. Housewife
2. Students
3. Underage (Country Specified)
4. Senior Citizen
5. Disabled
 5.2.3 Inflation Rate

• Percentage change in the price level of a basket of goods and services

consumed by households is known as Inflation Rate

• It is usually measured on an annual basis. For example, the inflation rate for
the year 2000 is the percentage change in prices from the end of December
1999 through the end of December 2000.

• We measure the price level by constructing a price index. One major price
index is the Consumer Price Index (CPI). It is used to estimate the average
variation between two given periods in the prices of products consumed by
households.

• Formula :
•To find percentage change in prices between two years, we use the formula :
IR = {(CPI – CPI ₋₁) / CPI ₋₁} X 100%
•Here t = later year, t-1 = earlier year

• When we know the inflation rate, we can find out whether our income is (1)
keeping up with, (2) not keeping up with, or (3) more than keeping up with
inflation. How we are doing depends on whether our income is rising by (1)
the same percentage as, (2) a smaller percentage than, or (3) a greater
percentage than the inflation rate, respectively.
 5.3 Macroeconomic Equilibrium

5.3.1 AGGREGATE DEMAND

What Is Aggregate Demand?
Aggregate demand is a measurement of the total amount of demand for all finished goods
and services produced in an economy. Aggregate demand is expressed as the total amount
of money exchanged for those goods and services at a specific price level and point in time.

Components of Aggregate Demand

Aggregate demand is the sum of the demand curves for different sectors of the economy.
This is usually divided into four components:

• Consumer Spending:
Consumer spending represents the demand by individuals and households within
the economy. While there are several factors in determining consumer demand, the
most important are consumer incomes and the level of taxation.

• Investment Spending:
Investment spending is the total expenditure on new capital goods and services such
as machinery, equipment, changes in inventories, investments in nonresidential structures,
and residential structures. Investment spending depends on factors such as interest rates
(since they determine the cost of borrowing), future expectations regarding the economy,
and government incentives (such as tax benefits or subsidies for investing in renewable
energy).

• Government Spending:
Government spending represents the demand produced by government programs,
such as infrastructure spending and public goods. This does not include services such
as Medicare or social security, because these programs simply transfer demand from one
group to another.

• Net Exports:
Net exports represents the demand for foreign goods, as well as foreign
demand for domestic goods. It is calculated by subtracting the total value of a
country's exports from the total value of all imports.
Calculating Aggregate Demand

The equation for aggregate demand adds the amount of consumer spending,
private investment, government spending, and the net of exports and imports.
The formula is shown as follows:

Aggregate
Demand=C+I+G+NX
NX=X-M
X = Exports
M = Imports Here,
• C=Consumer spending on goods and services
• I=Private investment and corporate spending
on non-final capital goods (factories,
equipment, etc.)
• G=Government spending on public goods
and social services (infrastructure,
Medicare, etc.)
• NX=Net exports (exports minus imports)
Aggregate Demand Curve
If you were to represent aggregate demand graphically, the aggregate amount of goods and
services demanded would be placed on the horizontal X-axis, and the overall price level of
the entire basket of goods and services would be represented on the vertical Y-axis.
The aggregate demand curve, like most typical demand curve, slopes downward from left
to right. Demand increases or decreases along the curve as prices for goods and services
either increase or decrease. Also, the curve can shift due to changes in the money supply, or
increases and decreases in tax rates.

Price
Level

AD

Real GDP
5.3.2 AGGREGATE SUPPLY
1.Definition:

The amount of goods and services that business produces and thereby supply in a specific
year-is called Aggregate supply.

2.Aggregate Supply Curve:

An aggregate supply curve shows the quantity of all the goods and services that businesses
in an economy will sell at a particular price level.In the long run, the aggregate supply
curve is vertical, but the aggregate supply curve will be upward sloping in the short run.

3. Short Run Aggregate Supply Curve:

The short‐run aggregate supply (SRAS) curve is considered a valid description of the supply
schedule of the economy only in the short‐run. The short‐run is the period that begins
immediately after an increase in the price level and that ends when input prices have
increased in the same proportion to the increase in the price level.During the short‐run,
sellers of final goods are receiving higher prices for their products, without a proportional
increase in the cost of their inputs. The higher the price level, the more these sellers will be
willing to supply. The Figure below illustrates the SRAS upward sloping curve which reflects
the positive relationship that exists between the price level and the quantity of goods
supplied in the short run.

4. Long Run Aggregate Supply Curve:

The long‐run aggregate supply (LRAS) curve describes the economy's supply schedule in the
long‐run. The long‐run is defined as the period when input prices have completely adjusted
to changes in the price level of final goods. In the long‐run, the increase in prices that
sellers receive for their final goods is completely offset by the proportional increase in
the prices that sellers pay for inputs.

5.Changes in aggregate supply.

Changes in aggregate supply are represented by shifts of the aggregate supply curve. An
illustration of the ways in which the SRAS and LRAS curves can shift is provided in Figures (a)
and (b). A shift to the right of the SRAS curve from SRAS 1 to SRAS 2 of the LRAS curve from
LRAS 1 to LRAS 2 means that at the same price levels the quantity supplied of real GDP has
increased. A shift to the left of the SRAS curve from SRAS 1 to SRAS 3 or of the LRAS curve
from LRAS 1 to LRAS 3 means that at the same price levels the quantity supplied of real GDP
has decreased .
 5.3.3 Equilibrium
A macroeconomic equilibrium is a combination of overall price and quantity at which
all buyers and sellers are satisfied with their overall purchases, sales, and prices. It is
the point where the aggregate demand curve intersects with the aggregate supply
curve
 5.4 THE CONCEPT OF UNEMPLOYMENT

5.4.1 Definition and types of unemployment

1. FRICTIONAL
2. STRUCTURAL
3. CYCLICAL

FRICTIONAL UNEMPLOYMENT
Time period a worker searches for or is transitioning from one job
to another.

EXAMPLE OF FRICTIONAL UNEMPLOYMENT:

A good example would be a graduation student with a PhD. This student cannot
settle for a job in McDonald's, instead the student remains unemployed until
they can find proper employment for their degree.

CAUSE OF FRICTIONAL UNEMPLOYMENT:

The cause of this unemployment is an individual’s decision to leave the
employment and find a new job that will better suit the person’s needs. This kind
of unemployment is normal, because only in a communist country can they have
full employment: Meaning everyone is employed and must stay employed for
the remainder of their lives regardless of their goals. Other reasons a worker
may leave a current job, would be work conditions, wages, or better
opportunities offered elsewhere.

SOLUTIONS TO FRICTIONAL UNEMPLOYMENT:

US Government has established rules and regulations to protect workers in their

work environment and treatment. Employers cannot force workers to continue
working for them if the worker decides to quit as we are not a communist
country and have the right to quit. There are few circumstances in which a
worker has made a contract with the employer which they must honor, but in
most cases a worker can annul the contract without must struggle from an
employer. The US government has also established an unemployment
department for such workers to assist in the search for a new position, to help
reduce search time.
Q: How does frictional unemployment arise?

• Employer is rude → Push employees out of job.

• Employee is unwilling to do job without securing another job.

• Jobless because of no experience when out of university.

STRUCTURAL UNEMPLOYMENT
Occurs when market condition change for the long term and declining a certain industry.

• EXAMPLE OF STRUCTURAL UNEMPLOYMENT

For example, employees replaced by machines. These employees cannot manage the
machines because they do not have the skills to. Like a labor factory that use to reply
on workers to package their goods, and now they use machines to separate and
package their goods for retail. Leaving all the workers that once did all the packaging in
unemployment.

• CAUSES OF STRUCTURAL UNEMPLOYMENT

Similar to frictional unemployment but last longer. When the work force does not
have the skill needed for the job and the unemployment last longer because the
worker becomes dishearted.

CYCLICAL UNEMPLOYMENT
EXAMPLE OF CYCLICAL UNEMPLOYMENT:
Agricultural workers that are hired to pick fruit are only needed for picking during
a limited time frame, once the season ends the worker is once again unemployed.

CAUSE OF CYCLICAL UNEMPLOYMENT:

The cause of cyclical unemployment is the downturn or recession of the business
cycle, when demand for goods and services in that industry decline and the companies
are forced to lay off their workers to maintain profits.

• Revival -> Unemployment ↓

• Recession -> Unemployment ↑

SOLUTIONS TO CYCLICAL UNEMPLOYMENT:

Government assistance as unemployment benefits and career services during their

job search, is a good temporary solution for worker. This financial help gives workers
time to search for alternative employment, along with extra assistance in finding
suitable employment.
Q. Differentiate between Frictional and Structural Unemployment

Frictional Structural
Unemployment Unemployment
temporary condition long term condition
arise because of arises because of the
changing of jobs marketing conditions
no linkage to strong linkage with
business cycles business cycles
it's an unavoidable requires active
situation regulation
 Chapter 5

5.4.2 Equilibrium in the labour market

Definition: The equilibrium in the labour market occurs when the supply of labour (workers)
equals the firms' demand for labour.

We know that the labor market consists of the demand for and the supply of labor. Like a
goods market, the labor market can
Manifest….The equilibrium in the labour market occurs when the supply of labour (workers)
equals the firms' demand for labour.
(1) Equilibrium
(2) a Shortage, or
(3) a Surplus.
So three possible states of the labor market are:

The graph below,

Equilibrium: When equilibrium exists in the labor market, the same number of jobs are
available as the number of people who want to work. That is, the quantity demanded of
labor is equal to the quantity supplied.

Shortage: When the labor market has a shortage, more jobs are available than are people
who want to work. That is, the quantity demanded of labor is greater than the quantity
supplied.

Surplus:When the labor market has a surplus, more people want to work than there are jobs
available; the quantity supplied of labor is greater than the quantity demanded
 5.5 Price stability and inflation

Inflation is a rise in prices, which can be translated as the decline of purchasing power over
time. The rate at which purchasing power drops can be reflected in the average price
increase of a basket of selected goods and services over some period of time. The rise in
prices, which is often expressed as a percentage, means that a unit of currency effectively
buys less than it did in prior periods. Inflation can be contrasted with deflation, which occurs
when prices decline and purchasing power increases.

KEY TAKEAWAYS
•Inflation is the rate at which prices for goods and services rise.
•Inflation is sometimes classified into three types: demand-pull inflation, cost-push inflation,
and built-in inflation.
•The most commonly used inflation indexes are the Consumer Price Index and the Wholesale
Price Index.
•Inflation can be viewed positively or negatively depending on the individual viewpoint and
rate of change.
•Those with tangible assets, like property or stocked commodities, may like to see some
inflation as that raises the value of their assets.

5.5.1 Definition and types of inflation:

1. Low Inflation (0 - 9%)
2. Galloping Inflation (10 - 99%)
3. Hyper Inflation (100 - ∞)

1.Low Inflation
a.Creeping Inflation
Creeping, or mild, inflation occurs when prices rise slowly. According to the Federal Reserve,
when prices increase by 2% or less, it benefits economic growth. This kind of mild inflation
makes consumers expect that prices will keep going up, which boosts demand. Consumers
buy now in order to beat higher future prices, and so mild inflation drives economic
expansion. For that reason, the Fed sets 2% as its target inflation rate.

b. Walking Inflation
This type of inflation is faster than creeping inflation, but not as fast as galloping or
hyperinflation. It is harmful to the economy because it heats up economic growth too
quickly. People start to buy more than they need in order to avoid tomorrow's much higher
prices. This increased buying drives demand even further, and suppliers often can't keep up.
More importantly, neither can most people’s wages. As a result, you can be priced out of
common goods and services.
2.Galloping Inflation
When inflation rises to 10% or more, it can be very damaging to the economy. Money loses
value so quickly that business and employee income can't keep up with costs and prices.
Foreign investors, in turn, avoid the country where this occurs, depriving it of needed
capital. The economy becomes unstable, and government leaders lose credibility. For this
reason, avoiding galloping inflation is a key objective of many central banks.

3.Hyperinflation
It occurs when prices skyrocket by more than 50% per month. It is very rare. In fact, most
examples of hyperinflation occur when governments print money to pay for wars. One of
the most extreme examples is Hungary, where in 1945, prices doubled every 15 hours.
Venezuela has been fighting a bout of hyperinflation since the early 2010s.

Inflation on Economic situation

Demand-Pull Effect
Demand-pull inflation occurs when an increase in the supply of money and credit
stimulates the overall demand for goods and services to increase more rapidly than the
economy's production capacity. This increases demand and leads to price rises.
When people have more money, it leads to positive consumer sentiment. This, in turn,
leads to higher spending, which pulls prices higher. It creates a demand-supply gap with
higher demand and less flexible supply, which results in higher prices.
Cost-Push Effect
Cost-push inflation is a result of the increase in prices working through the production
process inputs. When additions to the supply of money and credit are channeled into
a commodity or other asset markets, costs for all kinds of intermediate goods rise.
This is especially evident when there's a negative economic shock to the supply of key
commodities.
These developments lead to higher costs for the finished product or service and work
their way into rising consumer prices. For instance, when the money supply is expanded,
it creates a speculative boom in oil prices. This means that the cost of energy can rise and
contribute to rising consumer prices, which is reflected in various measures of inflation.
Built-in Inflation

Built-in inflation is related to adaptive expectations or the idea that people expect
current inflation rates to continue in the future. As the price of goods and services rises,
people may expect a continuous rise in the future at a similar rate. As such, workers may
demand more costs or wages to maintain their standard of living. Their increased wages
result in a higher cost of goods and services, and this wage-price spiral continues as one
factor induces the other and vice-versa.
5.5.2 Measurement of Inflation
1. Inflation
Inflation is an increase in the price level and is usually measured on an annual basis. It is
the positive percentage change in the price level on a country economy.
Note: Sometime, the price level starts to fall causing deflation state.

2. Measures Of Inflation
The most well-known indicator of inflation is the Consumer Price Index (CPI), which
measures the percentage change in the price of a basket of goods and services consumed
by people. There are other types of indicators as well such as,

1. Producer Price Index (PPI)

2. Retail Price Index (RPI)
3. Import Price Index (MPI)
4. Export Price Index (EPI)

3. Consumer Price Index (CPI)

The Consumer Price Index (CPI) is the measure of average change in price level over a
certain period of time paid by the consumers for a basket of goods and services.
It measures inflation by comparing the average change in price level over time. It is
measured by the weighted average of the prices of all goods and services.

❑
CPI in period t = (CPI in period t – 1) x (weighted change in prices in period t)

❑
Weighted change in prices in period t = Σ [ Relative importance of
good in (t – 1) x%△(percentage change) of goods from (t – 1) to t ]
Category (Basket of goods and services):

Weight Price Level for each Category

Weight Per 100 2020 2021
Food 0.175 17.5 220 225
Housing 0.460 46 300 310
Apparel 0.04 4 180 189
Transport 0.19 19 280 285
Medical 0.049 4.9 287 292
Others 0.086 8.6 185 190
ΣW=1 100

Q.
1. Can you build CPI from the above table?
2. What is the inflation rate for 2021?

Soln.
1. CPI is weighted average
Weighted Average = Σ wx i i [ Σwi is always 1]

CPI2020 = 0.175x220+0.460x300+0.04x180+0.19x280+0.049x287+0.086x185
= 266.873

CPI2021 = 0.175x225+0.460x310+0.04x189+0.19x285+0.049x292+0.086x190
= 274.333

CPI - CPI
2021 2020

2. inflation rate in 2021 = ─────────────────x100%

CPI 2020

= 2.795%
 5.6 Inflation-unemployment trade-off

A. W. Phillips, in his research paper published in 1958, indicated a negative statistical

relationship between the rate of change of money wage and the unemployment rate. It was
also shown that a similar negative relationship holds for rate of change of prices (i.e.,
inflation) and the unemployment level. This relation is usually generalized in the Phillips
Curve.

Phillips Curve drawn in the above figure shows that as the unemployment level rises the
rate of inflation falls.

This relation poses a dilemma to the policy makers. If the objective of price stability is to be
attained, the country must accept a high unemployment rate or if the country designs to
reduce unemployment, it will have to sacrifice the objective of price stability.

Why is there a trade-off between Unemployment and Inflation?

• If the economy experiences a rise in AD, it will cause increased output.
• As the economy comes closer to full employment, we also experience a rise in inflation.
• However, with the increase in real GDP, firms take on more workers leading to a decline
in unemployment ( a fall in demand deficient unemployment)
• Thus with faster economic growth in the short-term, we experience higher inflation
and lower unemployment.
5.6.1 Sort Run Philips Curve
The theory of the Phillips curve seemed stable and predictable. Data from the 1960’s
modeled the trade-off between unemployment and inflation fairly well. The Phillips curve
offered potential economic policy outcomes: fiscal and monetary policy could be used to
achieve full employment at the cost of higher price levels, or to lower inflation at the cost of
lowered employment. However, when governments attempted to use the Phillips curve to
control unemployment and inflation, the relationship fell apart. Data from the 1970’s and
onward did not follow the trend of the classic Phillips curve. For many years, both the rate of
inflation and the rate of unemployment were higher than the Phillips curve would have
predicted, a phenomenon known as stagflation. Ultimately, the Phillips curve was proved to
be unstable, and therefore, not usable for policy purposes.

This suggests the disappearance of trade-off between inflation and unemployment as

envisaged by A.W. Phillips. Monetary economist headed by Milton Friedman challenged the
concept of stable relationship between inflation and unemployment.

According to Friedman such trade-off— negative sloping Phillips Curve—can exist in the
short run at least, but not in the long run. In the short run, Phillips Curve may shift either in
the upward or downward direction as the relationship between these two macroeconomic
variables is not stable. On the other hand, in the long run, according to Friedman, no trade-
off exists between inflation and unemployment.

5.6.2 The Long-Run Phillips Curve

The long-run Phillips curve is a vertical line at the natural rate of unemployment, so inflation
and unemployment are unrelated in the long run.

The Phillips curve shows the trade-off between inflation and unemployment, but how
accurate is this relationship in the long run? According to economists, there can be no trade-
off between inflation and unemployment in the long run. Decreases in unemployment can
lead to increases in inflation, but only in the short run. In the long run, inflation and
unemployment are unrelated. Graphically, this means the Phillips curve is vertical at the
natural rate of unemployment, or the hypothetical unemployment rate if aggregate
production is in the long-run level. Attempts to change unemployment rates only serve to
move the economy up and down this vertical line.

To explain Friedman’s long run Phillips curve, we need to learn the concept of ‘natural rate
of unemployment’. Unemployment is ‘natural’ when some people do not want to work at
the going wage rate or their services are no longer required. Long run Phillips Curve has
been shown below.
In this Figure, OA—the ‘natural rate unemployment’—is associated with zero inflation. The
curve SRPC1 is the short run Phillips Curve showing low or zero expected inflation. For
obvious reasons, SRPC3 describes high expected inflation. As people’s expectations
regarding future price level changes, short run Phillips Curve shifts upwards showing trade-
offs between inflation and unemployment.
Since, in the long run, expected inflation matches with the actual inflation, the long run
Phillips Curve LRPC becomes vertical at the ‘natural rate of unemployment’. It follows then
that, in the long run there is no trade-off. In the long run any rate of inflation can occur with
a natural rate of unemployment or the ‘non- accelerating-inflation rate
of unemployment’ (NAIRU).
Actual Unemployment Rate & NAIRU for the US