Monthly Unemployment 2014 – 2015 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 6.6 6.7 6.7 6.2 6.2 6.1 6.2 6.2 6.0 5.7 5.8 5.6 2015 5.7 5.5 5.5 5.4 5.5 5.3 5.3 5.1 5.1 5.0 5.0 5.0 Monthly Inflation Rate 2014 – 2015 Year Jan Feb MarApr MayJun Jul Aug Sep Oct NovDec 2014 1.6 1.6 1.7 1.8 2.0 1.9 1.9 1.7 1.7 1.8 1.7 1.6 2015 1.6 1.7 1.8 |1.8 1.7 1.8 1.8 1.8 1.9 1.9 2.0 2.1 Examine the monthly data on the unemployment rate and the inflation rate for 2014-2015 i) What trends do you observe in the unemployment rate? In the inflation rate? ii) Identify the relationship between Inflation and Unemployment, if any. (positive, negative, no relationship) Use the data to justify your choice. iii) Does the relationship observed in part 2 satisfy the economists' view of the relationship between inflation and unemployment? Use references to support your answer.

Monthly Unemployment 2014 – 2015 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 6.6 6.7 6.7 6.2 6.2 6.1 6.2 6.2 6.0 5.7 5.8 5.6 2015 5.7 5.5 5.5 5.4 5.5 5.3 5.3 5.1 5.1 5.0 5.0 5.0 Monthly Inflation Rate 2014 – 2015 Year Jan Feb MarApr MayJun Jul Aug Sep Oct NovDec 2014 1.6 1.6 1.7 1.8 2.0 1.9 1.9 1.7 1.7 1.8 1.7 1.6 2015 1.6 1.7 1.8 |1.8 1.7 1.8 1.8 1.8 1.9 1.9 2.0 2.1 Examine the monthly data on the unemployment rate and the inflation rate for 2014-2015 i) What trends do you observe in the unemployment rate? In the inflation rate? ii) Identify the relationship between Inflation and Unemployment, if any. (positive, negative, no relationship) Use the data to justify your choice. iii) Does the relationship observed in part 2 satisfy the economists' view of the relationship between inflation and unemployment? Use references to support your answer.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

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Question 4Monthly Unemployment 2014 – 2015Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2014 6.6 6.7 6.7 6.2 6.2 6.1 6.2 6.2 6.0 5.7 5.8 5.62015 5.7 5.5 5.5 5.4 5.5 5.3 5.3 5.1 5.1 5.0 5.0 5.0Monthly Inflation Rate 2014 – 2015Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2014 1.6 1.6 1.7 1.8 2.0 1.9 1.9 1.7 1.7 1.8 1.7 1.62015 1.6 1.7 1.8 1.8 1.7 1.8 1.8 1.8 1.9 1.9 2.0 2.1Examine the monthly data on the unemployment rate and the inflation rate for 2014-2015i) What trends do you observe in the unemployment rate? In the inflation rate?ii) Identify the relationship between Inflation and Unemployment, if any. (positive, negative, no relationship) Use the data to justify your choice.iii) Does the relationship observed in part 2 satisfy the economists' view of the relationship between…
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