Part 1: Use the web pages below to describe recent trends in GPD, employment, inflation, and unemployment and assess the current state of the economy. Does the data suggest a growing or contracting economy?
Part 2: Based on your assessment of the economy, what monetary policy is appropriate? What is the Federal Reserve System’s current target interest rate for federal funds rate and what changes would you recommend that are consistent with your proposed monetary policy?
There is no page requirement for this assignment. Your paper grade is based on your ability to use material and concepts from class to address parts 1 and 2.
GDP: U.S. Bureau of Economic Analysis (BEA) (click on ‘View’ by “Gross Domestic Product. See the figure and text for recent trends in GDP). Or search “BEA and GDP”.
