Question 4 Monthly Unemployment 2014 – 2015 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Monthly Inflation Rate 2014 – 2015...

Question    4
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 Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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.