What do current economic data tell us about the health of the economy?
You have just been randomly selected to participate in a student focus group conducted by the Council of Economic Advisers (Links to an external site.). Your selection does not imply that you supported the President in the last election or that you agree with his views.
In preparation for the focus group meeting you are asked to prepare a written Discussion Board Post which describes the state of the aggregate economy and outlines possible policy options that can be pursued by the administration during the next 2 years. Your post should consist of your complete responses to the four questions posed below. At least one complete paragraph should be devoted to each question. Please number your responses to the questions below and carefully read the “Requirements” section below. Your posting should employ economic reasoning and apply the concepts that you have learned in Econ 2 Online.
Questions:
1. What do current economic data tell us about the health of the economy? Assess the current health of the U.S. economy by evaluating the key economic indicators that we have looked at in this course. How close is the overall economy to potential GDP and the natural rate of unemployment? Is the economy experiencing an inflationary or recessionary gap? The relevant economics statistics that you should discuss include the growth rate of real GDP, the unemployment rate, and the inflation rate at a minimum. You are encouraged to discuss and evaluate other economic indicators that could add to a more complete picture of the current state of the economy. Do you detect any areas of weakness in the aggregate economy? Does an upsurge in inflation appear to be a concern for policy makers? Please use the latest data that are available.
Answer preview What do current economic data tell us about the health of the economy?
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