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Create a determination about the state of the economy

Assignment Help Macroeconomics
Reference no: EM131954262

Assignment

Part One:

Assume the United States has a potential GDP of approximately $20.6 trillion. Use economic indicators from the last eight quarters to make a determination about the state of the economy, whether the U.S is in a recession, expansion or macroeconomic equilibrium. You must explain and support your answer with information you have researched and learned during the semester. Any research that is used must be cited in the paper. This information should include the following:

· Real GDP

· Unemployment rate

· Labor Force Participation rate

· Inflation rate

Part Two:

Draw a graph (AD-AS w/LRAS) showing the economic situation you have stated in Part One. The graph should be clearly labeled. Include a paragraph which describes the graph. Bar graphs, circle graphs and the PPF are not appropriate graphs for this part.

 

Q1' 2016

Q2' 2016

Q3' 2016

Q4' 2016

Q1' 2017

Q2' 2017

Q3' 2017

Q4' 2017

Real GDP (Growth Rate)

0.6%

2.2%

2.8%

1.8%

1.2%

3.1%

3.2%

2.5%

Unemployment Rate

5.01%

4.9%

4.9%

4.8%

4.6%

4.3%

4.3%

4.1%

Labor Force Participation

62.8%

62.8%

62.8%

62.8%

62.9%

62.9%

62.9%

62.7%

Inflation Rate

0.9%

1.0%

1.5%

2.1%

2.4%

1.6%

2.2%

2.1%

Reference no: EM131954262

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