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Prepare a short paper of 600-900 words to present the following case study:

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Prepare a short paper of 600-900 words to present the following case study:
Assume that you have been invited to advise the Federal Reserve Chairman about the direction of U.S. monetary policy for the year ahead.

1. Prepare a summary of these key indicators for the U.S. economy: current inflation, current unemployment, and current real GDP growth.

2. Based on these indicators, describe the state of the U.S. economy in terms of the business cycle.

3. Propose a monetary policy (contractionary or expansionary) that responds to current economic conditions. Be specific about which tool of monetary policy you will use and how it works.

4. Make your case for the policy by describing its expected impact in the AS-AD model.

 
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