Using the AD-AS model and the macroeconomic theory on aggregate demand and aggregate supply and their determinants, macroeconomic equilibrium, recessionary gap, inflationary gap and output gaps and the current state of the US economy respond to the following questions:
Is the US economy self-correcting? Do you think the US economy is in a recessionary gap or inflationary gap or close to potential output? Explain briefly.
please avoid plagiarism