FRED work

Use website to construct graph: https://fred.stlouisfed.org

Demand Shocks - As we'll continue to discuss in class, a recession may reflect declines in aggregate demand, aggregate supply, or both.

Plot amonthlymeasure of consumer sentiment (FRED code:UMCSENT) series fromJanuary 1978 through February 2021.

(i)Attach Graph

(ii)What is the value of the index for February 2021?

Answer:

(iii)How would you describe the evolution of the index for the current recession as opposed to earlier recessions?Why has it behaved this way?

Answer:

(iv)Does the index predict recessions?Or does it follow them?Would you expect to see a quick rebound in this index?

Answer: