After you have studied Reading Between the Lines on pp. 716–717 answer the following questions.

a. What are the main features of U.S. inflation and unemployment since 1950 that brought fluctuations in the misery index?

b. When the misery index was at its peak in 1980, did inflation or unemployment contribute most to the high index?

c. Do you think the U.S. economy had a recessionary gap or an inflationary gap or no gap in 1980? How might you be able to tell?

d. Use the AS-AD model to show the changes in aggregate demand and aggregate supply that are consistent with the rise of the misery index to its peak in June 1980.

e. Use the AS-AD model to show the changes in aggregate demand and aggregate supply that are consistent with the rise of the misery index since President Obama assumed office.