Misery Index The following time-series plot (see photo) shows the annual unemployment and inflation rates for the years 2001 through 2017. Source: www.miseryindex.us (a) Estimate the unemployment rate in 2012. (b) In what year was the unemployment rate highest? (c) In what year was the inflation rate highest? (d) In what year were the unemployment rate and inflation rate furthest apart? (e) The misery index is defined as the sum of the unemployment rate and the inflation rate. According to the misery index, which year was more “miserable,” 2008 or 2011?
Misery Index The following time-series plot (see photo) shows the annual
(a) Estimate the unemployment rate in 2012.
(b) In what year was the unemployment rate highest?
(c) In what year was the inflation rate highest?
(d) In what year were the unemployment rate and inflation rate furthest apart?
(e) The misery index is defined as the sum of the unemployment rate and the inflation rate. According to the misery index, which year was more “miserable,” 2008 or 2011?
(a) The unemployment rate measures the proportion of unemployed people from the labor force.
According to the graph given, the unemployment rate in 2012 is 8%.
(b) According to the graph given, the unemployment line is peaked highest in the year 2010 approximately 9.8%.
(c) Inflation is the increase in the general price level in the economy. According to the graph given, the inflation line is peaked highest in the year 2008 approximately 4%.
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