There has been a lot of debate over the new normal. Traditionally we viewed the economy to be operating at potential when the unemployment rate was 5%. Following the recession there has been a lot of talk over the new normal. Will see unemployment at 5%. Here is an article at CNN (reviewing a more technical article at the Federal Reserve Bank of San Francisco).
We talked about this a lot last semester. I made a few comments that I think are still true today (here and here).
Tomorrow we will start our discussion of the labor market. Many of these terms are new, but hopefully after tomorrow you'll know a bit more.