The accompanying table shows a portion of monthly data on seasonally adjusted inflation and unemployment rates in the United States from January 2009 to November 2010.

a. Use a 3-period moving average and exponential smoothing with α = 0.6 to make in-sample forecasts for unemployment. Use the more appropriate smoothing method to forecast unemployment for December 2010.
b. Use a 3-period moving average and exponential smoothing with α = 0.6 to make in-sample forecasts for inflation. Use the more appropriate smoothing method to forecast inflation for December 2010.

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Year Month Unemployment Inflation 2009 Jan 7.7 0.3 2010 Nov 9.8 0.1