Questions:

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 July 22, 1997 report.

1. How does Greenspan characterize the overall state of the economy at the time of the report?
2. Based on these arguments, did Greenspan believe that the economy was operating at potential GDP, below potential GDP, or above potential GDP at this time?
3. Was the unemployment rate perceived to be at, below, or above the natural rate?