21 Jun he operative question amon
he operative question among macro policy specialists and investors is “by how much will the Federal Reserve target higher interest rates in 2017?” Currently, the U.S. economy is operating at 80% of full capacity, with fourth quarter GDP growth registering at 2.0%. The unemployment rate is at 4.7%, which is effectively close to full employment according to the Federal Reserve System. What do you think the central bank will do? Why? How does the drop in commodity prices, such as oil, coal, copper, and natural gas, affect your response? Please use the “money line-spending line” diagram and aggregate demand and supply curves as part of your analysis.
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