"National unemployment rate rising, Rate of inflation falling". Analyzing and explaining this Macroeconomic phenomenon.

Given the conditions presented in the headline, what is likely to happen to spend in the economy?What is likely to happen to output in this situation?Lastly, explain what actions the Fed might take.

Make sure to explain the economics in each part of your answer. You draw any diagrams of models you feel will help explain your ideas but be sure to explain all economic concepts clearly.

Here are the economic concepts of Macroeconomics you may use to analyze and explain. (You do not have to use all the concepts below, just find the points you think can help you to analyze and explain.)

Measuring Inflation. Different Measures of Inflation. Adjusting for the Effects of Inflation. The Role of Money and the Costs of Inflation.

Employment and Unemployment. The Dynamics of the Labor Market. Understanding Unemployment. The Costs of Unemployment.

Aggregate Expenditure. The IS Curve: Output and the Real Interest Rate. The MP Curve: What Determines the Interest Rate. The IS-MP Framework. Macroeconomic Shocks.

The Fed Model. Analyzing Macroeconomic " Shocks. Diagnosing the Causes of Macroeconomic Changes.

Consumption, Saving, and Income. The Micro Foundations of Consumption. The Macroeconomics of Consumption. What Shifts Consumption?

Economic Growth Facts. The Ingredients of Economic Growth. The Analytics of Economic Growth. Public Policy: Why Institutions Matter for Growth.

Thank you so much.