Consider these statistics for a particular country (it's not the US!)

	2020	2022
GDP	$300 billion	$355 billion
GDP per capita	$50,000	$62,000
Unemployment rate	4%	5%
Labor force participation rate	65%	70%
Inflation rate	2%	6%
Consumer Price Index	100	110

Is this economy in a recession or in an expansion in 2022 (compared to 2020)? Justify your answer carefully and completely, being sure to incorporate each piece of information into your assessment. In order to fully answer this question, you will have to make at least one calculation - you must show all the steps in that calculation.

Part two:

State whether the economy in 2022 is in a recession or an expansion. Then use Aggregate Demand-Aggregate Supply analysis to explain how the economy moved from its equilibrium GDP, unemployment rate, and price level in 2020 to its equilibrium GDP, unemployment rate, and price level in 2022. That is, what shift in Aggregate Demand or Aggregate Supply would have caused the changes in GDP, unemployment, and the price level shown in Question 1? How does that shift create the changes we see in GDP, unemployment, and inflation? Be sure that your explanation fully explains what-causes-what by placing events in the proper sequence. You do not have to draw a graph for this question, but your explanation must use Aggregate Demand-Aggregate Supply concepts.

Part 3:

Identify the appropriate fiscal policy action for this economy (to do that, you'll have to first identify what problem the economy is currently facing). Then use Aggregate Demand-Aggregate Supply analysis to explain how that fiscal policy would help solve the problem facing this economy. Be sure that the explanation fully explains what-causes-what by placing events in the proper sequence.

Part 4: First, list the specific fiscal policy action you identified and described in question 3:

Then identify and describe two shortcomings or difficulties in using that fiscal policy action.