https://www.npr.org/2022/02/10/1079953239/how-to-bring-down-inflation

The Federal Reserve raises interest rates to lower inflation : The Indicator from Planet Money : NPR

THE PODCAST LINK IS MENTIONED ABOVE.

1. First, GIVE brief explanation of what the Fed is doing to improve economic conditions. Answer the following questions:
   • Is this policy expansionary or contractionary?
   • What tool will the Fed use?
   • How will this tool work to slow down inflation?
   • Why do inflation expectations matter?
2. Next, use the graphing template to DRAW AS/AD model, labeling everything. (LINK TO GRAPHING TEMPLATE IS GIVEN BELOW AS www.tinyurl.com/graph-grid

www.tinyurl.com/graph-grid

• Demonstrate graphically how this policy will affect the AS/AD model. Be sure to label everything clearly so I can see the state of the economy before and after the policy takes effect.
• 3) Finally, submit your image along with your explanation of how the policy has impacted the economy (your response to the questions in item #1 above).