🧠 NRU LAB ⚙️ Build, predict & test the natural rate

📘 Frictional + Structural = NRU. Cyclical = Actual − NRU.
🏅 Mastery Points 0

📊 1. Build the Natural Rate (NRU)

⚠️ Important: Frictional and structural unemployment are always ≥ 0%.
Only cyclical unemployment can be negative, when Actual < NRU (inflationary gap).
Cannot be negative (min = 0%)
Cannot be negative (min = 0%)
📌 Natural Rate of Unemployment (NRU)
5.0%
= Frictional + Structural
Can be lower than NRU → negative cyclical unemployment
🔄 Cyclical Unemployment = 2.0

💡 Formula: Cyclical = Actual − NRU. Positive → recessionary gap. Negative → inflationary gap.

🔄 2. What changes NRU over time?

📌 How to play: Tap a scenario, then tap a zone (INCREASES or DECREASES NRU). Tap a placed card to send it back. Grading happens when you press Check.

⬆️ INCREASES NRU

⬇️ DECREASES NRU

📐 3. Formula check & scenario challenge

NRU = Frictional + Structural
5.0% = 3.0% + 2.0%
Cyclical = Actual − NRU
2.0% = 7.0% − 5.0%
Output gap:
Recessionary gap (cyclical > 0)