Reference no: EM1342974
Read the article as below and answer below question, answer only address what being asked, do not add own event or think might occur.I don't need any introduction and conduction of the assignment, only answer below 3 question,
https://online.wsj.com/news/articles/SB10001424052702303902404579151250723752112
1. Draw an aggregate demand(AD)-aggregate supply (AS) complete framework that shows where the US economy in a full employment equilibrium& then where it is now.
Explain what events you think led it to be in this situation & tell whether those events affected the AD, long run AS, short run AS curves.
2. The article quote Stephen G."his clients in the manufacturing sector have been reluctant to start projects in recent months. But he's not sure whether uncertainty from Washington...is causing the problem or something else" Regardless of the source of the uncertainty, use a financial market to explain the impact of clients being"...reluctant to start projects" Demonstrate that impact on interest rates and investment demand.The show the impact on the AD curve.
3. The article also states that Fed will be ".. staying the course on its easy money policies through the year's end.." using the financial market again,& starting from the point where u demonstrated the impact of the uncertainty on the financial market above ,demonstrate what fed is doing maintaining"...$85 billion a month in bond purchase.." Explain why they think that may help the economy and what impact theyhopeto have in an AD-AS framework.
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