13 Jun Accounting Question -4
39Assume the United States has a potential GDP of approximately $18 trillion. Use economic indicators from the last eight quarters to make a determination about the state of the economy, whether the U.S is in a recession, expansion or macroeconomic equilibrium. You must explain and support your answer with information you have researched and learned during the semester. Any research that is used must be cited in the paper. This information should include the following:
Real GDP
Unemployment rate
Labor Participation rate
Inflation rate
Part Two:
Draw an AD/AS graph showing the economic situation you have stated in Part One. Be sure to include the Potential GDP ( Long run As) curve on the graph. The graph should be clearly labeled. Include a paragraph which describes the graph. Bar graphs, circle graphs and the PPF are not appropriate graphs for this part. For examples, look in chapter 13 and 15 of the textbook.
The graph maybe hand drawn, however, rulers should be used. Failure to do so will result in deduction of points.
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