1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1.7 1.0 1.0 1.3 1.3 1.6 2.9 3.1 4.2 5.5 Inflation Unemployment 5.5 6.7 5.5 5.7 5.2 4.5 3.8 3.8 3.6 3.5
The annual data for the US economy in the 1960s are given below
(A) Show these data graphically.
(B) From 1966 through 1969, the
(C) In 1974, the unemployment rate was 5.6%. What would have been the projected inflation rate using the
(D) The inflation rate fell from 12.5% in 1980 to 3.8% in 1982 (on a monthly average basis) even though the unemployment rate rose ‘‘only’’ 2.6% during those two years. What other factors caused the inflation rate to decline so quickly?
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