1. Go to theBureau of Labor Statistics (BLS)and look up the recent changes in the consumer price index. Using that information, answer the following questions: a. Where do you think the economy is relative to potential? b. How does our answer to the above question determine what policy you wouldsuggest the government should follow?

2. Go to the Conference Board's home page (www.conference-board.org) and read the press release of the consumer confidence index. Based on this release: a. What do you think will happen to the AD curve? b. How will this affect the price level and equilibrium output? c. Respond to at least two other students original posts.