Section 1: 30pts Topic: The Relationship between Inflation and Unemployment Authors: Greg Depersio Updated: August 22, 2020 Historically, inflation and unemployment have maintained an inverse relationship, as represented by the Phillips curve. Low levels of unemployment correspond with higher inflation, while high unemployment corresponds with lower inflation and even deflation. From a logical standpoint, this relationship makes sense. When unemployment is low, more consumers have discretionary income to purchase goods. Demand for goods rises, and when demand rises, prices follow. During periods of high unemployment, customers purchase fewer goods, which puts downward pressure on prices and reduces inflation. Positive correlation between inflation and unemployment can also be a good thing - as long as both levels are low. The late 1990s featured a combination of unemployment below 5% and inflation below 2.5%. An economic bubble in the tech industry was largely responsible for the low unemployment rate, while cheap gas amid tepid global demand helped keep inflation low. In 2000 the tech bubble burst, resulting in an unemployment spike, and gas prices began to climb. From 2000 to 2020 , the relationship between inflation and unemployment once again followed the Phillips curve, but far less. In the light of the following back, answers the following questions using a quantitative correlational methodology: 1) Write the Problem Statement using inflation and/or unemployment (4 parts with Hook, Anchor, General Business Problem and Specific Business Problem) =7pts 2) Write the Purpose Statement (5 parts including Purpose, Variables, Population, Justification for Population and Social Change Statement) = 5 pts 3) Write the Research Question (Just 1 research question) =2 pts 4) Write the Research Hypothesis (Null and Alternative) =4pts 5) Write the Nature of the Study (Methodology and Design) =7pts 6) Write the Significance of the Study (Contribution to Business and Positive Social Change )=5pts Section 1: 30pts Topic: The Relationship between Inflation and Unemployment Authors: Greg Depersio Updated: August 22, 2020 Historically, inflation and unemployment have maintained an inverse relationship, as represented by the Phillips curve. Low levels of unemployment correspond with higher inflation, while high unemployment corresponds with lower inflation and even deflation. From a logical standpoint, this relationship makes sense. When unemployment is low, more consumers have discretionary income to purchase goods. Demand for goods rises, and when demand rises, prices follow. During periods of high unemployment, customers purchase fewer goods, which puts downward pressure on prices and reduces inflation. Positive correlation between inflation and unemployment can also be a good thing - as long as both levels are low. The late 1990s featured a combination of unemployment below 5% and inflation below 2.5%. An economic bubble in the tech industry was largely responsible for the low unemployment rate, while cheap gas amid tepid global demand helped keep inflation low. In 2000 the tech bubble burst, resulting in an unemployment spike, and gas prices began to climb. From 2000 to 2020 , the relationship between inflation and unemployment once again followed the Phillips curve, but far less. In the light of the following back, answers the following questions using a quantitative correlational methodology: 1) Write the Problem Statement using inflation and/or unemployment (4 parts with Hook, Anchor, General Business Problem and Specific Business Problem) =7pts 2) Write the Purpose Statement (5 parts including Purpose, Variables, Population, Justification for Population and Social Change Statement) = 5 pts 3) Write the Research Question (Just 1 research question) =2 pts 4) Write the Research Hypothesis (Null and Alternative) =4pts 5) Write the Nature of the Study (Methodology and Design) =7pts 6) Write the Significance of the Study (Contribution to Business and Positive Social Change )=5pts
