Data Analysis Unemployment and Inflation [1 Question] 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.
Data Analysis
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.
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