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Gather some information on key economic aggregates in the recent past and determine whether the economy was above or below potential GP during...
1. Gather some information on key economic aggregates in the recent past and determine whether the economy was above or below potential GP during January 2018. Some variables you should include in your answer are the inflation rate, inflation expectations, the unemployment rate, other labor market indicators, the level of output in both nominal and real terms, and the level of the money supply. Consider trends in these values and include credible news stories you uncover in your inevitable google search as well. You will undoubtedly find estimates of potential GDP, that is not the "total answer here," in all cases you must provide empirical support for your determination as to where the economy is. Your answer should begin with a clear statement of what potential GDP is.
2. Find a suitable article from either The Wall Street Journal or The Economist relating to the macro economy of the US and include an interpretation in the context of an economic model (i.e. AD/AS, financial markets, PPF, etc.) where the interpretation clearly identifies the effect or impact of that article's topic on the economy. Include a way to find the article, preferably a PDF or a URL. A graph showing the economy prior to the events in the article and after the events in the article chosen must also be included in the provided answer.
