Read the following article from the Wall Street Journal and answer two questions. (1) Use AD-AS model to show the effect of Fed Rate Rise on the economy, how will affect real output, employment, and price change? (2) To stabilize the economy, how would Fed react if Trumps tax cut and increased spending is enacted? Fed Rate Rise Could Come Relatively Soon as Data Point to Stronger Economy Fed Chairwoman Janet Yellen tells Congress the economy is making very good progress amid some of the best government data in decades on housing, jobless claims and inflation

Read the following article from the Wall Street Journal and answer two questions. (1) Use AD-AS model to show the effect of Fed Rate Rise on the economy, how will affect real output, employment, and price change? (2) To stabilize the economy, how would Fed react if Trumps tax cut and increased spending is enacted? Fed Rate Rise Could Come Relatively Soon as Data Point to Stronger Economy Fed Chairwoman Janet Yellen tells Congress the economy is making very good progress amid some of the best government data in decades on housing, jobless claims and inflation

User_10286 added on 12/03/16 at 09:47 PM (PST):

please let me know if u have any question. Also, please attach the graph for this homework, he required a graph