Business, 17.02.2021 20:30 ameliaduxha7

Aggregate Demand and Aggregate Supply" is about the model that shows us how to distinguish between demand shocks and supply shocks, creating differences between what the economy could produce at full employment, or "potential output," and what is currently being produced, know as an output "gap." Is there currently a negative output gap, has the output cap closed finally, or is there now a positive output gap? After doing some research online, and reviewing the key terms of this chapter discuss the following:

1. Is the economy in a recessionary gap? an inflationary gap? (Note "inflation" of prices is not the same as an "inflationary gap" between potential output & actual output) Or is the U. S. Economy cruising steadily along at full employment? What evidence is there in the labor force (bea. gov), in the capital utilization rate published by (www. federalreserve. gov)?

2. Use your new economic vocabulary to discuss what economic indicators support your view. (Use current economic data from the Bureau of Labor Statistics, the Census Bureau, the Federal Reserve, etc., and cite your sources).

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