2. **What is Neutral Interest Rate? significance of Its Level:**
   The neutral interest rate is the rate where monetary policy neither stimulates nor restricts economic activity. If the actual rate is below neutral, the policy is considered loose, while if above, it is tight, affecting economic growth accordingly.

3. **How to Calculate Neutral Interest Rate?**
   Estimating the neutral interest rate is complex and model-dependent, such as the Laubach-Williams model. It utilizes various economic factors and potential output growth rates to determine this dynamic natural rate used for evaluating monetary policy.