The CPI tracks the average change in prices of a basket of goods and services over time, whereas the UNRATE is the percentage of the labour force that is unemployed. By examining the cointegration between these two variables, you can gain insights into the relationship between inflation and unemployment in the US economy. The quarterly series is complete and seasonally adjusted.   a) From a theoretical perspective, are these two series expected to be cointegrated? Justify your answer.   b)How do expectations about future economic conditions influence the speed of adjustment? Are there any other factors that might affect the speed of adjustment?

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