1.5.2 Use the OECD website (www.oecd.org) or the World Bank website (www.worldbank.org) to find monthly or quarterly data about your country’s inflation and unemployment rate over the past three years.

a. What trend do you observe? Can what you observe be explained through aggregate demand and supply?

b. Plot the data on a graph with unemployment measured on the x-axis and inflation on the y-axis. Do you see any tradeoff between inflation and unemployment? Provide an explanation.