Hi!

Here is the question. I am a bit lost because I don't understand the difference between the 2 periods. I also don't why I am supposed to use the Okun's Law since the Phillips curve is much better to find a demand-pull or a cost-push. Can you help me?

1. Referring to the graph below, Belgium (BEL) 10 8 6 RATES (percent and percent/year) Unemployment . ..... . .... Inflation .. ... . 2 1970 1980 1990 2000 2010 TIME (year) compare and contrast inflation in 1980 and 1990 in terms of cost-push and demand-pull (both are possible in certain circumstances). Note that the non-accelerating inflation rate of unemployment (NAIRU) is a proxy for the natural rate of unemployment. Support your explanation with the appropriate equation(s). Hint, Okun's law may be helpful here