Discussion Forum "ECON"

"Aggregate Demand and Aggregate Supply" is about the model that shows us how to distinguish between demand shocks and supply shocks, creating differences between what the economy could produce at full employment, and what is currently being produced, know as an output "gap."

Is there currently an output gap? After doing some research online, and reviewing the key terms of this chapter discuss the following:

1. Is the economy in a recessionary gap? an inflationary gap? Are we at full employment(what evident is there in the labor force, in the capital utilization rate published by (www.federalreserve.gov)?

2. Use new economic vocabulary to discuss what economic indicators support your view.(Use current economic data from the Bureau of Labor Statistics, the Census Bureau, the Federal Reserve, etc., and cite your sources).

write one page.