The following time-series plot shows the annual unemployment and inflation rates for the years 2001 through 2017

(a) Estimate the unemployment rate in 2012.
(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 furthest apart?
(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”, 2008 or 2011?

Transcribed Image Text:

Unemployment Rate Inflation Rate Year 100€ -2 0 2 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- -910€ 2017- Percent 8 10 Unemployment and Inflation Rates