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%