What is the current state of unemployment and

Question

Read the latest press release from the Fed (FOMC) and write a 2 page essay (+ cover sheet) addressing all the following questions:

1. How do you think the Fed has addressed the recent crisis and what are the monetary policy actions the FOMC took in the September meeting?

2. What is the current state of the US economy? Define how GDP is doing in each of its components (Consumption, Investment, Government Purchases and Net Exports).

3. What is the current state of unemployment and inflation? How is that important for the Fed? (Make sure you use the concepts learned regarding unemployment and inflation and the monetary policy tradeoff between the two)

4. What policy action do you think the FOMC will take in its December 15-16 meeting? What would you do if you were in charge of conducting monetary policy? Why?

Answer 1

Study the latest press release from the Fed (FOMC) and write a 2 page essay (+ cover sheet) addressing all the subsequent questions: 1. How do you think the Fed has addressed the current crisis and what are the monetary policy exploits the FOMC took in the September meeting? 2. What is the current state of the US economy? Describe how GDP is doing in each of its components (Consumption, Investment, Government Purchases and Net Exports). 3. What is the recent state of unemployment and increase? How is that significant for the Fed? (Be sure you use the ideas learned regarding unemployment and increase and the monetary policy tradeoff between the 2).