The key macroeconomic issues in any economy are unemployment and inflation. Both can have a devastating effect on any economy if not controlled. Unemployment is an indication of the health of the economy. Unemployment means that there is a portion of the productive population (labor force) that is not producing and unable to earn income for consumption and/or for investment. The more unemployed workers there are, the less output the economy will be able to produce. High unemployment also means that there are fewer wages available in the hands of people to consume, which reduces the incentive or need for suppliers to produce at full capacity (lower GDP). Inflation is the general and persistent increase in the price of goods and services. High inflation or hyperinflation can lead to a loss in real wages, fall in the value of the country's currency, and economic hardship. Deflation, on the other hand, means general low prices and is also bad as it is a disincentive for producers, including farmers, as returns would be less than previous years

Scenario

Aondona is a developing country whose primary industry is oil and gas. Due to the level of growth, the type of industries and resources of the country, employment rates have varied over the years. You have been appointed as an economic advisor to the president of this country, Dr. Isabel Ihotu. She wants to create fiscal policies for the country but they will be based on the unemployment and inflation rates of the country. You are tasked with creating a trend analysis of both macroeconomics issues(unemployment and inflation) for presentation to the president.

Assignment:

Review the scenario provided. Then follow steps listed to include the calculations and analysis of inflation and unemployment rates of Aondona.

1. Calculate the monthly inflation rate.
   • Include a column with the inflation rate to the document: Aondona Consumer Price Index
   • What period(s) can be labeled inflation periods, and which are deflationary periods? Explain.
   • What do inflation and deflationary periods mean for local producers, the economy, and foreign investors?
2. Make a graph showing the inflation rates and their corresponding months
   • The graph should be titled and labeled.
   • Data is accurately represented
3. Calculate the monthly unemployment rates.
   • Insert a new column titled "Monthly Unemployment" to the Aondona Employment Rates document.
   • Provide the unemployment rate for each month?
   • Show the calculations (formulas) for each answer provided
4. Calculate monthly labor participation.
   1. Insert a new column titled "Participation Rate" to the Aondona Employment Rates document
   2. Provide the labor participation rate for each month?
   3. Show the calculations (formulas) for each answer provided
5. Make a graph showing the unemployment rate for each month
   • The graph should be titled and labeled.
   • Data is accurately represented
6. Analyze the data in the document: Aondona Employment Rates
   • What are the periods of increased unemployment and employment?
   • The years for GDP presented in the document:Aondona Aggregate Expenditure[DOWNLOAD] and unemployment in the document: Aondona Employment Rates [DOWNLOAD] overlap. Is there a correlation between GDP and the unemployment rate for the country of Aondona? Explain.

\fA1 X Y fix year A B C D E year month Unemployed Employed Adult Population 2016 January 4 15 30 2016 February 4.2 15.1 30 2016 March 4.21 15 30 2016 April 4.17 15.13 30 2016 May 4.21 15 30 2016 June 4.5 14.72 30 2016 July 4.5 14.7 30 2016 august 4.7 14.57 30 2016 September 4.8 14.44 30.2 2016 October 4.9 14.36 30.2 12 2016 November 5.8 14 29 13 2016 December 8 10.8 29.5 14 2017 January 9.8 9.9 28 15 2017 February 8.5 10.5 30 16 2017 March 7.2 10.87 33 2017 April 7 10.9 32.5 18 2017 May 6.8 11.4 31.8 19 2017 June 5.3 12.8 31.9 20 2017 July 4.8 13.9 31.45 2017 august 4 14.2 31.8 2017 September 3.5 14.8 31.7 23 2017 October 3 15.2 31.75 24 2017 November 2.9 15.5 31.6 25 2017 December 2.5 16.45 32.5 26