Analyze unemployment and inflation data as to their relation to output and growth, using macroeconomic principles and models to explain their effect.

1.Explain how inflation and unemployment are calculated for the data presented

2.Discuss how changes in both are related to changes in GDP growth

3.Apply specific models developed throughout the course to demonstrate how the previously selected events influenced both unemployment and inflation during this time period.

4.Discuss how the events impacted both economic indicators

5.For the final draft, look to include our AD-AS model to illustrate how events led the changes observed in both

FRED ~- Producer Price Index by Commodity: All Commodities 38 37 36 Index 1982=100 35 34 33 32 31 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 U.S. recessions are shaded; the most recent end date is undecided. Source: U.S. Bureau of Labor Statistics fred.stlouisfed.orgFRED ~ - Unemployment Rate 7.5 7.0 6.5 6.0 Percent 5.5 5.0 4.5 4.0 3.5 3.0 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 U.S. recessions are shaded; the most recent end date is undecided. Source: U.S. Bureau of Labor Statistics fred.stlouisfed.orgFRED - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average 40.0 37.5 Index 1982-1984=100 35.0 32.5 30.0 27.5 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 U.S. recessions are shaded; the most recent end date is undecided. Source: U.S. Bureau of Labor Statistics fred.stlouisfed.org