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First Question:
Go to the BEA website (http://www.bea.gov). On the left tab under Resources, go to the Interactive Data. Select GDP & Personal Income. Under Section 1, see Tables 1.1.6 and 1.1.7. Examine all four components of GDP (C, I, G, and Xn). Which of these four components of AD are rising and which are dropping? On the top righthand corner of the page, you can click on Modify to select prior years.
Second Question
See the latest Beige Book of the Federal Reserve at this link: http://www.federalreserve.gov/monetarypolicy/beigebook/default.htm. Read the Summary section. Based on the information provided, the U.S. economy is currently in which phase of the Business Cycle? Why?
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