apply your knowledge to analyze the United States. Using the understanding of supply and demand gained this week, you will expand your knowledge as it pertains to changes in market equilibrium and the concepts of price ceilings and price floors.

Locate a recent article or event published in 2022 that highlights your selected macroeconomic topic. Use the

• State the article or event selected.
• Identify fiscal policy tools used by the federal government. Explain whether the federal government should be using contractionary or expansionary fiscal policy and why.
• How does aggregate supply (AS) differ from aggregate demand (AD)? Can you explain how you would note whether the United States is in the short run or long run as it pertains to the AD/AS model?
• State whether the United States is in an inflationary or recessionary gap. Identify which determinants of aggregate demand and/or aggregate supply have overcorrected our economy. Or do you believe the United States is at its long-run equilibrium?
• What steps need to be taken by the federal government to move our economy back to long-run equilibrium? Can you explain whether the United States will be stuck with higher price levels now and in the future?