1. FRED work (3 points)

Demand Shocks - As we discussed in class, a recession may reflect declines in aggregate demand, aggregate supply, or both.

Plot a monthly measure of consumer sentiment (FRED code: UMCSENT) series from January 1978 through the latest data point. (1.5 points, as indicated per question)

(i) Insert graph here. (Do not attach separately.) (1.0 points) (-

FRED ~- University of Michigan: Consumer Sentiment 120 110 100 90 Index 1966:Q1=100 80 70 60 50 1980 1985 1990 1995 2000 2005 2010 2015 2020 Shaded areas indicate U.S. recessions. Source: University of Michigan fred.stlouisfed.org