5. The Phillips curve in the late 20th century

The following table presents historical unemployment and inflation data in the United States for the years 1974 through 1978.

Year	Unemployment Rate	Inflation Rate
(Percent)	(Percent)
1974	5.6	11.0
1975	8.5	9.1
1976	7.7	5.8
1977	7.1	6.5
1978	6.1	7.6

Plot the data for these five years on the following graph.

Note: You will not be graded on how you plot the points, but plotting the points accurately on the graph will help you examine the relationship between unemployment and inflation during this period and solve the problems that follow.

13 12 Data Points 11 10 9 INFLATION RATE (Percent) 8 5 3 4 5 7 9 10 11 UNEMPLOYMENT RATE (Percent)