The economy

The US government and the Federal Reserve is a great source for economic data. The Federal Reserve site below will allow you to create graphs using data from the government. Create a graph that includes a measure of money such as M1 or M2, consumer price index, unemployment rate and real gross domestic product over time. Put time on the horizontal axis of your graph and the other variables on the vertical axis. You should be creating only one graph. Use monthly data that covers a time period of at least five years, with 2020 as the most current year.

Save your graph as a picture and insert into a Word file (.docx).

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Write an essay in which you

1. Evaluate the currrent state of the economy based upon the data in your chart.

2. Prescribe an appropriate monetary policy for the economy. Explain why you selected the policy you did and how it will improve the economy.

3. State at least one assumption that underlies how effective monetary policy will be.

 

 

 

research.stlouisfed.org/fred2/

 

Once you enter the site above, look for a help tab. Click on it and then look for Graphs. You will find tutorials on how to create and share the graph. The Data link in help will allow you to find sources for the data you need. The easiest way to share the graph is to save it as a picture and insert it into the .doc or .docx documents you will be submitting as your assignment.

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