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AD-AS diagram

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Draw an AD-AS diagram to represent the current state of the US economy. Make reference to the current values of inflation and the unemployment rate.

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Solution Summary

This solution formulates an AD-AS diagram to represent the current state of the US economy.

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Current value of CPI can be found at the following location:

ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

Current value of unemployment can be found at the following location:

ftp://ftp.bls.gov/pub/special.requests/lf/aat1.txt

Both these are the official numbers as of the last release of both CPI and unemployment rate. The numbers are subject to revision with subsequent releases. From the numbers on CPI ...

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