cuss which macro challenge seems the most important to you as of May 2022: economic growth, unemployment, or inflation. Make sure that your answer includes the current level of these variables. The Council of Economic Advisers requests that you carefully describe and explain at least two macro policy options that the President can consider to deal with the macro challenge. Hints: Many economists and the Federal Reserve believe that inflation has become the most important economic challenge in recent months. If you choose to discuss the inflation problem, you can consider policies to bring the inflation rate down to the 2% Federal Reserve target. One policy should be a demand side policy that would reduce Aggregate Demand (AD) at the expense of real GDP. The other policy could be a supply side policy which would address the increase in energy and commodity prices as well as supply chain disruptions. Note: You are free to discuss economic growth or unemployment as the principal macro challenge. Make sure that your response discusses the current data and outlines two policy options.
Discuss which macro challenge seems the most important to you as of May 2022:
Hints: Many economists and the Federal Reserve believe that inflation has become the most important economic challenge in recent months. If you choose to discuss the inflation problem, you can consider policies to bring the inflation rate down to the 2% Federal Reserve target. One policy should be a demand side policy that would reduce Aggregate Demand (AD) at the expense of real GDP. The other policy could be a supply side policy which would address the increase in energy and commodity prices as well as supply chain disruptions.
Note: You are free to discuss economic growth or unemployment as the principal macro challenge. Make sure that your response discusses the current data and outlines two policy options.
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