The following time-series plot shows the annual unemployment and inflation rates for the years 1988 through 2010.

(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 4 -1 Year