Question 1

The Phillips curve is an economic model, named after William Phillips, represents the relationship between the rate of inflation and the unemployment rate.

Required

i. Collect past 10 years' annual data for unemployment rate and inflation rate for the country of Fiji Islands and show the information on a line graph (put inflation rate on Y axis and unemployment rate on the X axis).

ii. Based on part(i), is the Phillips curve theory valid for the country the country of Fiji? Discuss.