Chapter 9 - Assignment 3: Alan Greenspan's February 1998 Report

Twice each year, the Chair of the Federal Reserve Board of Governors is required to provide a report to Congress on the state of the economy. Read Alan Greenspan's February 1998 report.
  1. How does Greenspan characterize the overall state of the economy at the time of the report?
  2. Based on Greenspan's testimony, what changes did he perceive occurring in aggregate demand and supply last year?
  3. Based on this testimony, did Greenspan believe that the economy was operating at potential GDP, below potential GDP, or above potential GDP at this time? Explain.

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