The State of Macroeconomy

    Order Description   A politician running for office has just made a public statement that the state of the U.S. economy has been deteriorating during the last decade. You are a journalist fact-checker and analyst for a political and economic website called “Macroeconomy Explained”. Your job is to write a short article evaluating the validity of the politician's statement by •focusing on the main economic indicators, namely the GDP, the inflation rate and the unemployment rate. •using the economic models and theories of the macroeconomy to offer an insightful economic analysis of the US economy in the last decade. 1.What do the GDP, inflation rate and unemployment rate tell us about the performance of the U.S. economy in the last 10 years? 2.How does the performance compare to the previous decades? Do the 3 macroeconomic indicators tell the same story? 3.What large macroeconomic event affected the performance of the economy in the past 10 years? Explain and analyze the event using the model of aggregate demand and aggregate supply (AD-AS model). (Hint: Draw the model and show and explain what happened.) 4.What monetary and fiscal policy responses were taken to address the economic event described in #3. Show their intended impact using the Theory of Liquidity Preference (money market) and the AD- AS model. 5.Was the politician's statement correct? Explain.