Figure 96: the Output Gap 1980-2012 (SOURCE: Federal Reserve Economic

question 93

Essay

Figure 9.6: The Output Gap 1980-2012 (SOURCE: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Figure 9.6 above shows the output gap for the years 1980-2012. Using the Phillips curve and Okun's law, discuss the impacts on inflation and unemployment for the years 1997-2000 and 2008-2012. From this analysis, what is the relationship between unemployment and inflation?

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Definitions:

Volute

A spiral, scroll-like form characteristic of the ancient Greek Ionic and the Roman Composite capital.

Ionic

One of the two systems (or orders) invented in ancient Greece for articulating the three units of the elevation of a classical building: the platform, the colonnade, and the superstructure (entablature). The Ionic order is characterized by, among other features, volutes, capitals, columns with bases, and an uninterrupted frieze. See also Doric.

Greek Column Capital

The topmost element of a column in Greek architecture, varying in design - Doric, Ionic, or Corinthian - and serving both structural and decorative purposes.

Athenian White-Ground Lekythos

A type of ancient Greek vase, often used for storing oil, distinguished by its white background and detailed figural decoration.