Wednesday

July 30, 2014

July 30, 2014

Posted by **Samantha** on Saturday, September 9, 2006 at 10:44pm.

I need to analyze the data. How are the two rates related? How does one affect the other, if so?

One way to analyze the data is to put the inflation data on one axis, say the x-axis, and the unemployment data on the y-axis. You might need to determine some scale to make the presentation usable. If you have 15 data points for each year, then find the range for each set: Subtract the smallest value from the largest. If you do this on a spreadsheet, it'll automatically scale the data. From this plot you should be able to see if there's some kind of direct or inverse relationship between the data. Are they linearly related?

After reviewing my post I'm not sure I was clear on what to do here. If you make a collection of ordered pairs for the data as (inflation, unemployment), then order the data by inflation and plot it you can determine how they might be related. This would be an x-y scatter plot, except that the data would be ordered to see if there's some kind of functinal relationship.

If you look at plots where the data are plotted separately as functions of time, relations between them may not be apparent.

**Related Questions**

Economics - 9. During the 1990's the inflation and unemployment trends in the ...

Macroeconomics - inflation! - Hi! I had to graph inflation/unemployment... Why ...

Macroeconomics - Suppose the economy has been experiencing zero inflation and ...

Macroeconomics - The Philips Curve Suppose the economy has been experiencing ...

economics today - Suppose the economy has been experiencing zero inflation and ...

Economics - Its difficult to meet the requirements of ceteris paribus when ...

Macroeconomics - Say you have a 15% inflation rate and a 10% unemployment rate, ...

history - How did hitler's economic policies affect germany before world war II...

social studies - Treasury inflation protection bonds pay: fixed interest plus an...

macroeconomics - Assume that a series of inflation rates is 1 percent, 2 ...