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Federal Reserve’s FRED database : http://research.stlouisfed.org/fred2/

Go to the Federal Reserve’s FRED database (Links here: http://research.stlouisfed.org/fred2/), and have a look at the evolution of the civilian unemployment rate (Links here:https://research.stlouisfed.org/fred2/series/UNRATE/ ) in the post-WWII period. (1) Briefly describe what you see, (2) briefly discuss why unemployment is such an important economic indicator, and consider (3) what the government’s role is with regard to the evolution of the unemployment rate, making full use of your knowledge of the IS/LM model.

Instructions: Be brief, but precise. Be explicit with regard to the IS/LM model. You might write about 500 words. Pay attention to grammar, spelling and style. Essays are graded with 10 participation credits. (Sloppy contributions will earn zero credits!)

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