Could you scan the diagram please. Thanks! Question 2Assume that the following are the statistics for Xlandia's inflation and unemployment from 1985to 2020. (Your answer should be 200 words +10%)YearInflation (%)Unemployment (%)YearInflation (%)Unemployment (0)1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 20026.3 9.4 7.3 9.1 16.0 24.3 16.6 15.8 8.3 13.4 18.0 11.9 8.6 4.6 5.0 6.1 3.4 3.72.4 3.0 3.3 2.3 2.3 3.6 5.6 6.0 5.9 5.0 6.4 9.8 11.3 12.4 11.7 11.2 11.2 10.32003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20204.9 7.8 9.5 5.9 3.7 1.6 2.4 3.5 2.4 3.1 3.4 1.5 3.0 1.8 1.7 2.9 3.0 2.78.9 7.3 6.9 8.5 9.8 10.5 9.8 8.8 8.3 7.2 6.3 6.1 5.6 4.9 5.2 5.0 4.8(a) Draw the line of best fit through the points on the diagram. Does it look anything likea Phillips curve?(b) Now draw the line of best fit for four separate curves: one for the period 1985-89;one for 1995-00; one for 2001-2008; and one for 2009-2020. (I) In which two of thefour periods is there apparently a trade-off and (II) in which one of these two is theinflation/unemployment relationship more favourable?4.7

Definition of Philips Curve: The Phillips curve is an economic concept that illustrates the…

(a) Draw the line of best fit through the points on the diagram. Does it look anything like a Phillips curve? (b) Now draw the line of best fit for four separate curves: one for the period 1985-89; one for 1995-00; one for 2001-2008; and one for 2009-2020. (I) In which two of the four periods is there apparently a trade-off and (II) in which one of these two is the inflation/unemployment relationship more favourable?

(a) Draw the line of best fit through the points on the diagram. Does it look anything like a Phillips curve? (b) Now draw the line of best fit for four separate curves: one for the period 1985-89; one for 1995-00; one for 2001-2008; and one for 2009-2020. (I) In which two of the four periods is there apparently a trade-off and (II) in which one of these two is the inflation/unemployment relationship more favourable?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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