1 what problem is affecting this economy? Use an economic term to answer other than inflation.

2. Provide and analyze two pieces of economic data that support your answer to number one.

3. What specific monetary policy action does this economy need?

4. What specific fiscal policy actions does economy need?

5. Evaluate the comments by President Sally Jenkins. Does she correctly understand what the economy needs? Why or why not6. Evaluate the comments by fed chairman how Kubrick does he correctly understand what the economy means why or why not?? 

 

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The end of the pandemic that gripped the country and most of the world the last three years has fueled extraordinary economic activity. The economy grew at an annual rate of nearly 9% last quarter, making it a full year that the American economy has grown at a clip higher than 8%. We learned today that the economy added 550,000 jobs last month, bringing the unemployment rate down to 2.7%; that is the lowest unemployment rate recorded since World War II. Soaring home prices and a churning stock market have consumers and businesses ready to spend, though analysts fear all that spending may be more than the economy can handle; the CPI rose 9.7% last month over the same month a year ago, and there are fears that the CPI will increase by double digits this month. President Sally Jenkins took credit for the positive economic numbers, crediting her administrations $1 trillion tax cut last year; the president also pledged to carry on with plans for $1 trillion in spending on both defense and a national child care program; she did not comment on the CPI numbers. Fed Chairman Hal Kubrick did make note of the CPI, calling the trend "alarming" and promising to help Americans with rising prices by keeping interest rates near zero. The end of the pandemic that gripped the country and most of the world the last three years has fueled extraordinary economic activity. The economy grew at an annual rate of nearly 9% last quarter, making it a full year that the American economy has grown at a clip higher than 8%. We learned today that the economy added 550,000 jobs last month, bringing the unemployment rate down to 2.7%; that is the lowest unemployment rate recorded since World War II. Soaring home prices and a churning stock market have consumers and businesses ready to spend, though analysts fear all that spending may be more than the economy can handle; the CPI rose 9.7% last month over the same month a year ago, and there are fears that the CPI will increase by double digits this month. President Sally Jenkins took credit for the positive economic numbers, crediting her administrations $1 trillion tax cut last year; the president also pledged to carry on with plans for $1 trillion in spending on both defense and a national child care program; she did not comment on the CPI numbers. Fed Chairman Hal Kubrick did make note of the CPI, calling the trend "alarming" and promising to help Americans with rising prices by keeping interest rates near zero.

Answer rating: 100% (QA)

Economic Problem The economy is facing the challenge of overheating Supporting Economic Data a GDP G... View the full answer