Instructions

Describe the relationship between real GDP growth and the change in the unemployment rate (Okun's Law) and the unemployment rate and the change in inflation for one of the following three periods in U.S. history: 1948-1969 1970-1999 2000-2023 Download the following variables to graph both Okun's Law and the Phillips Curve. Make sure to get annual numbers for all variables and include the year before your time period starts: Unemployment rate (UNRATE) Consumer Price Index for All Urban Consumers: All Items in U.S. City Average (CPIAUCSL) Percent Change from a Year Ago Real Gross Domestic Product (GDPC1) Percent Change from a Year Ago Provide a scatter plot for both Okun's Law and the Phillips Curve (in either Excel or Google Sheets) overall and for each time period above and include a (linear) trendline with the equation for the best fit line. You should have four graphs of Okun's Law and four graphs of Phillips Curve Okun's Law graph should have Real GDP growth on the horizontal axis and the change in the unemployment rate on the vertical axis. Change in the unemployment rate is this period's unemployment rate minus last year's unemployment rate. Phillips Curve graph should have the unemployment rate on the horizontal axis and the change in inflation on the vertical axis. Change in inflation is this period's inflation minus last period's inflation. Make sure to label your graphs and axes.