Question: 1. Research, report, and present the current U.S. Labor Force Participation, Unemployment, and Inflation rates. Given these rates, is the U.S. economy likely experiencing a

1. Research, report, and present the current U.S. Labor Force Participation, Unemployment, and Inflation rates. Given these rates, is the U.S. economy likely experiencing a below, at, or above full-employment macroeconomic equilibrium? Explain using textbook concepts and language.

2. What current events are likely to impact the rates you found in #2? In what specific ways? Why do you believe this? Given, your assumption regarding the current macroeconomic equilibrium described above along with the current events and their impacts you discussed, what action do you recommend the Federal Reserve (Fed) take? Explain fully referring to the specific type of monetary policy the Fed should use. Explain fully referring to the specific monetary policy tool the Fed should use in a Monetary Policy with Limited Reserves system. Explain fully referring to the specific monetary policy tool the Fed should use in a Monetary Policy with Ample Reserves system.

3. Use the Money Market Model and the ADAS Model to discuss in detail the chain of events by which this monetary policy will affect the economy. Start with the monetary policy tool (of a Limited Reserve system) and end with the changes that will happen to GDP, employment, and the price level. Explain using textbook concepts and language.

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