. Explain the difference between potential GDP and actual GDP. Relate each of them to the long run and short run models

[answerhappygod]

. Explain the difference between potential GDP and actual GDP.
Relate each of them to the long run and short run models we've
learned about.
2. Since 1980 there have been 5 recessions. Roughly what years
did they occur?
3. Compare/contrast each one with respect to severity and length
of time to return to potential.
Now compare the GDP graph to the Federal Funds
Rate (Links to an external site.) over that time
period.
4. For each recession - What was the
federal funds rate just prior to the recession starting? How low
did it go in response? What was the total amount it decreased?
5. What differences do you observe regarding the FFR for each
recession? How does this relate to your analysis in #3?
6. Summarize the issue of zero bound interest
rates. (Links to an external site.) Make some connections
to your response for #5.