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?
Definitions:
Social Categories
Classifications of people based on shared qualities or characteristics such as age, gender, race, religion, and social status.
Social Groups
Collections of individuals who interact based on shared interests, beliefs, or characteristics, forming a structure within which social relations occur.
Daily Interaction
Refers to the routine communication and activities that occur between individuals on a regular day-to-day basis.
Withdrawal
The act of removing oneself from participation or involvement in a particular activity, situation, or substance use.
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