Question
, we know that the Bureau of Economic Analysis collects Real GDP data on a quarterly basis (Jan, Apr, Jul, Oct). We also know that
, we know that the Bureau of Economic Analysis collects Real GDP data on a quarterly basis (Jan, Apr, Jul, Oct). We also know that Bureau of Labor Statistics collects CPI data monthly. From the AD-AS model, we know that price can goes up due to upward shifting of SRAS, or upward shifting of AD curve. Suppose currently (November) the BLS announces the CPI increases from 320 to 323, how can I tell whether this inflation is driven by the SRAS or AD? What kind of data can help us to determine the source of this inflation? (Hint: Think about what data is also collected monthly and go from there)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started