The accompanying table provides data from the United States on the average annual rates of unemployment and inflation. Use the numbers to construct a scatter plot similar to Figure 16-5. Discuss why, in the short run, the unemployment rate rises when inflation falls.

Transcribed Image Text:

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Unemployment rate 6.0 5.5 5.1 4.6 4.6 5.8 9.3 9.6 8.9 8.1 7.2 Inflation rate 2.3 2.7 3.4 3.2 2.9 3.8 -0.3 1.6 3.1 2.1 1.5