Name Instructor Course Date Inflation Unemployment and Fed The gross domestic product is used to measure the growth and development of the economy in a given nation. It is the total production in a country without much consideration on the person that was involved in the production. The real GDP is the measure of a given economy to the adjustment in price. Its main consideration is on the deflation and inflation in an economy. A higher GDP in general means an increased economic growth. The GDP however may show some growth in a country that is not reflected in the improvement of a given economy. The GDP is just a representation of the summing up the spending of the consumers the surplus of exports about imports investment made by companies and industries and the total spending of the government. The actions described are not sufficient on themselves to show aims at controlling the price stability and the inflation in the economy. The Federal Reserve also controls unemployment which is a measure of the success of the economy to some extent. It uses different tools to determine the amount of money in the economy using the expansionary and the contractionary policies. The actions of the Fed have a direct impact to the economy hence they have to be taken with utmost seriousness and professionalism. References Gordon Robert J. A new method of estimating potential real GDP growth: Implications for the labor market and the debt/GDP ratio. No. w20423. National Bureau of Economic Research 2014. Kroft Kory and Matthew J. Notowidigdo. "Should unemployment insurance vary with the unemployment rate? Theory and evidence." The Review of Economic Studies 83.3 (2016): 1092-1124. Rate Inflation et al. "The Relationship Between Gross Domestic Product." Journal of Engineering and Applied Sciences 12.6 (2017): 1393-1400. Wiles William W. "Federal Reserve System." System (2015). [...]
To prepare to write your briefing, explore the Project resources to make sure you understand all the concepts that will come up in the debate. The Project resources explaining these concepts are listed in the order that you should review them. Also, read the two articles about the Federal Reserve. Write a briefing that explains the important background concepts to Mr. Politico. The report should be written so that someone without much knowledge of economics can understand. Your briefing does not need to follow a specific format, but it should include the following information and follow this basic structure: Begin by explaining the background concepts of: real GDP. inflation. unemployment. Explain the concepts of aggregate supply and aggregate demand, including recessionary and inflationary gaps. Explain what the Fed does. Use the above background concepts in your explanation, and answer the following questions: What is the Fed’s “dual mandate”? What tools does the Fed use to achieve its goals? What happens when the Fed pursues an expansionary or contractionary policy? To provide Mr. Politico with two specific examples of how the Fed works, summarize the two news articles. For each article, explain the main ideas presented, the evidence given to support these ideas, and the conclusions. Throughout the briefing, you will need to translate any economics jargon into simple, clear language for Mr. Politico. Look up any concepts that you don’t understand to help your analysis and be sure to use your own words as you write your briefing.