Questions We Can Help to Answer
Instructions:

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?
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.
https://www.economist.com/news/finance-and-economics/21697859-how-long-will-fed-keep-rates-steady-dc-holdem?zid=295&ah=0bca374e65f2354d553956ea65f756e0

https://www.nytimes.com/2016/03/17/business/economy/fed-interest-rates-meeting.html