Estimating the natural rate of unemployment To answer this question, you will need data on the annual French unemployment and inflation rates since 2000. Go to the English language Web site of the National Institute of Statistics and Economic Studies of France (http://www.insee.fr/en/ default.asp) to retrieve and download the annual data for the unemployment rate and inflation rate for France under the title "statistical indices and series." Select the data for the consumer price index as a measure of the retail price levels. a. Plot the unemployment and CPI data since 2000 to the present. Choose the unemployment on the horizontal axis 194 The Medium Run The Core and the change in inflation on the vertical axis. What is the relationship between these two variables? b. Draw a line of best fit for all points in the figure. Calculate the slope of the line and the intercept and then write down the equation for the line. c. According to your analysis in (b), what has been the natural rate of unemployment since 2000? 8. Changes in the natural rate of unemployment a. Repeat Problem 7, but now draw separate graphs for the period 2000 to 2008 and the period since 2008, which marks the global financial crisis. b. Do you find that the relation between inflation and unemployment is different in the two periods? If so, how has the natural rate of unemployment changed after the global financial crisis?