The following time-series plot shows the annual unemployment and inflation rates for the years 1988 through 2009.

(a) Estimate the unemployment and inflation rates for 1992.

(b) Estimate the unemployment and inflation rates for 2009. 

(c) The misery index is defined as the sum of the unemployment rate and the inflation rate. Use your results from (a) and (b) to estimate the misery index for the years 1992 and 2009.

(d) Describe any relationship that might exist between the unemployment rate and inflation rate over the time period shown.

Transcribed Image Text:

Unemployment & Inflation Rates 10 Unemployment Rate Inflation Rate -1 Year 6007 8007 LO07 9007 2005 2003 2001 000 6661 S661 L661 9661 1995 661 1993 1992 1661 066I 686I 2. Percent