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Calculate the 12-month percentage increase in the consumer price index (CPI), and plot this, along with the unemployment rate. Do you observe a positive correlation, a negative correlation, or a...

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Calculate the 12-month percentage increase in the consumer price index (CPI), and plot this, along with the unemployment rate. Do you observe a positive correlation, a negative correlation, or a correlation that is essentially zero? Can you find a Phillips curve relation or a reverse Phillips curve?

 

Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021
107 Votes
Calculate the 12-month percentage increase in the consumer price index (CPI), and plot this, along with the
unemployment rate. Do you observe a positive co
elation, a negative co
elation, or a co
elation that is
essentially zero? Can you find a Phillips curve relation or a reverse Phillips...
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