Use 2 graphs (goods market and money market), complemented with the following data from FRED, to graphically and verbally explain how the US economy has experienced a soft landing (drop in inflation/prices without a recession).

Use the following in your explanations and in the model graphs:

1. Think of what economic factors caused the COVID-19 Pandemic recession in 2020 (supply and demand shocks).
2. Think of how the economy recovered by the end of 2021 (fiscal and monetary policy).
3. Think of what is behind the high rates of inflation seen in 2022.
4. Think of what has happened in the economy since then (automatic adjustments, disappearance of shocks, action by the Fed, etc.) and where it is now.

The Fed Fund Rate, Unemployment and Inflation 15.0 13.5 Unemployment 10.0 Inflation 7.5 3.0 Fed Funds Rate 2.5 2018 2019 2020 2021 2022 2023 Source: Federal Reserve and Bureau of Labor Statistics