The Phillips Curve Is a Relationship in Macroeconomics Between the Inflation

question 4

Essay

The Phillips curve is a relationship in macroeconomics between the inflation rate (inf)
and the unemployment rate (ur).Estimating the Phillips curve using quarterly data for
the United States from 1962:I to 1995:IV, you find $\widehat { \operatorname { Inf } _ { t } } = 4.08 + 0.118 u r _ { t } , R ^ { 2 } = 0.003 , \text { SER } = 3.148$
$(1.11)(0.176)$ (a)Explain why, at first glance, this is a surprising result.

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Definitions:

Gross Profit

The difference between the revenue earned from selling goods or services and the cost of goods sold, not including overhead or other indirect expenses.

Cost of Goods Sold

The direct monetary requirements for producing goods that a company sells, involving both materials and workforce.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Increases

An upward adjustment or rise in an account value, assets, revenue, or profits within a company's financial statements.