View the step-by-step solution to:

The following chart (Source: Bureau of Labor Statistics) presents seasonally adjusted U. national unemployment rate since January...

Need assistance with answering questions from Macroeconomics. Please see attached.

= 1. The following chart (Source: Bureau of Labor Statistics) presents seasonally adjusted U.S. national unemployment rate since January 2004. For the latest data (including February 2014) please visit http://data.bls.gov/timeseries/LNS14000000 . a. You can see from the above chart that the unemployment rate fell gradually between December 2012 (u-rate: 7.9%) and February 2014 (current u-rate: 6.7%). Using economic analysis, explain the changes in unemployment rate between December 2012 and February 2014. What do you think will happen (to the unemployment rate) over the next 12 months? Please explain. b. What is the current unemployment rate in California (you can find the information from the BLS website)? What do you think will happen (to the CA unemployment rate) over the next 12 months? Explain your answer. 2. The Federal Open Market Committee (FOMC) met on January 28 & 29, 2014 to discuss the monetary policy options for the U.S . (You can find the press release on the Federal Reserve website.) Also, the jobs report for February 2014 was released by the Bureau of Labor Statistics on Friday, March 7, 2014. a. What did the FOMC decide to do regarding the federal funds rate? What were the reasons behind that decision? Do you think this was the best possible policy response from the Fed? Explain your answer. b. Currently, what are the Fed’s long-run goals and monetary policy strategy? 1
Background image of page 1
c. Read the jobs report for February 2014 (released on Friday, March 7.) Given the jobs situation as described in the report, what policy action do you expect from the Fed when the FOMC meets again on March 18 & 19, 2014? Explain your answer. d. Do you expect to see any changes in its long-run goals and monetary policy strategy? Explain your answer. 3. You are a senior financial analyst at Apple Inc., the largest technology company in the world by revenue and profit. Your division’s Vice President left a copy of the latest FOMC press release (please find it on the Federal Reserve website http://www.federalreserve.gov ) on your desk this morning and asked you to give him a summary report of the press release to him by this afternoon. He also wants you to include (in your report) a brief explanation of the implications of the Fed’s policy for Apple’s business over the next two years. What would you write in the report? 4. What exactly is quantitative easing? Would you consider the latest round of quantitative easing a success or a failure ? Please explain your answer. 2
Background image of page 2
Sign up to view the entire interaction

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question