Questions:

Read pages 45-50 of the Economic Report of the President, 1997.

1. Note that the "nonaccelerating-inflation rate of unemployment" (NAIRU) is another name for the natural rate of unemployment. According to this report, in what range of unemployment rates has the natural rate of unemployment generally been located during the years 1958-1996? What evidence is presented in support of this argument?
2. According to this document, why has the natural rate of unemployment changed during the past several decades?