11. In a couple of sentences, explain why the relationship shown in the graph is important for economic policy.

12. A newspaper article reports that the unemployment rate fell this month, but the number of people with jobs also declined. How is it possible for both unemployment and employment to fall at the same time? Give a concrete example of something people might be doing that could explain this. For the following two questions, you will use Okun's Law: U = -0.6(g - 2)

13. Suppose policymakers wanted to see unemployment fall by 1.2 points over the next year. How much real GDP growth would they have to achieve?

14. Here is the (approximate) CPI over the past five decades:

Year	CPI
1970s	18
1980s	36
1990s	60
2000s	80
2010s	100

In which decade was inflation the highest? (show your work)

In which decade was inflation the lowest? (show your work)

PLEASE TAKE YOUR TIME AND ANSWER ALL THE QUESTIONS FULLY. THANK YOU