Macroeconomics  inflation vs unemployment!!!!
posted by Samantha .
I had to graph both the U.S. inflation and unemployment rates on the same graph between the years 19902004.
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 xaxis, and the unemployment data on the yaxis. 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 xy 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.
Respond to this Question
Similar Questions

Macroeconomics  inflation!
Hi! I had to graph inflation/unemployment... Why did the inflation rate start increasing and the unemployment rate started decreasing after 2000? 
Economics
Its difficult to meet the requirements of ceteris paribus when studying a relationship between unemployment and inflation. Is this true or false? 
Macroeconomics
The Philips Curve Suppose the economy has been experiencing zero inflation and five percent unemployment for several years. The government decides to lower the unemployment percentage by generating some inflation. You need to do the … 
Macroeconomics
Assignment Question I can't find an answer too: Assume that a series of inflation rates is 1 percent, 2 percent, and 4 percent, while nominal interest rates in the same three periods are 5 percent, 5 percent, and 6 percent, respectively. … 
macroeconomics
Assume that a series of inflation rates is 1 percent, 2 percent, and 4 percent, while nominal interest rates in the same three periods are 5 percent, 5 percent, and 6 percent, respectively. a. What are the ex post real interest rates … 
Macroeconomics
Assignment Question I can't find an answer too: Assume that a series of inflation rates is 1 percent, 2 percent, and 4 percent, while nominal interest rates in the same three periods are 5 percent, 5 percent, and 6 percent, respectively. … 
Macroeconomics
Suppose the economy has been experiencing zero inflation and five percent unemployment for several years. The government decides to lower the unemployment percentage by generating some inflation. You need to do the following: 1)create … 
economics today
Suppose the economy has been experiencing zero inflation and five percent unemployment for several years. The government decides to lower the unemployment percentage by generating some inflation. You need to do the following: 
Economics
9. During the 1990's the inflation and unemployment trends in the United States changed. What was unusual in the 1990s? 
Economics
1.Gross Domestic Product Explain the difference between nominal GDP and real GDP. 2.Unemployment Name and explain the three types of unemployment. 3.Inflation Name and explain the two types of inflation. Use the following information …