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An article in the Economist states that the value of potential GDP "is almost impossible to pin down in real time since the economy's equilibrium long-run stock of capital and labour are so difficult to estimate with precision. . . ."
a. What does the article mean by "real time"?
b. What does the difficulty in estimating the "long-run stock of capital and labor" have to do with the difficulty of estimating the value of potential GDP in real time?
c. Does the difficulty of estimating potential GDP matter for policymakers? Briefly explain.
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