The following time-series plot shows the annual unemployment and inflation rates for the years 1992 through 2014.

(a) Estimate the unemployment rate in 2011.
(b) In what year was the unemployment rate highest?
(c) In what year was the inflation rate highest?
(d) In what year were the unemployment rate and inflation rate closest? furthest?
(e) The misery index is defined as the sum of the unemployment rate and the inflation rate. According to the misery index, which year was more "miserable", 1999 or 2014?
(f) Comment on the trend in the misery index since 2010.

Transcribed Image Text:

Unemployment & Inflation Rates 10 - Unemployment Rate - Inflation Rate 9. 8. Year Percent 3. 4) 1992 1993 1994 1995 9661 L661 8661 6661 0007 L007 2002 2003 2004 2005 9007 LO07 8007 6007 2010 2011 2012 2013 2014