Question

Year	Unemployment rate	gdp growth	cpi	inflation rate
1980	7.2	-0.2	87
1981	7.6	2.6	94	8.05
1982	9.7	-1.9	97.6	3.83
1983	9.6	4.6	101.3	3.79
1984	7.5	7.3	105.3	3.95
1985	7.2	4.2	109.3	3.80
1986	7.0	3.5	110.5	1.10
1987	6.2	3.5	115.4	4.43
1988	5.5	4.2	120.5	4.42
1989	5.3	3.7	126.1	4.65
1990	5.6	1.9	133.8	6.11
1991	6.9	-0.1	137.9	3.06
1992	7.5	3.6	141.9	2.90
1993	6.9	2.7	145.8	2.75
1994	6.1	4.0	149.7	2.67
1995	5.6	2.7	153.5	2.54
1996	5.4	3.8	158.6	3.32
1997	4.9	4.5	161.3	1.70
1998	4.5	4.5	163.9	1.61
1999	4.2	4.7	168.3	2.68
2000	4.0	4.1	174	3.39
2001	4.7	1.0	176.7	1.55
2002	5.8	1.8	180.9	2.38
2003	6.0	2.8	184.3	1.88
2004	5.5	3.8	190.3	3.26
2005	5.1	3.3	196.8	3.42
2006	4.6	2.7	201.8	2.54
2007	4.6	1.8	210.04	4.08
2008	5.8	-0.3	210.23	0.09
2009	9.3	-2.8	215.95	2.72
2010	9.6	2.5	219.18	1.50
2011	8.9	1.6	225.67	2.96
2012	8.1	2.2	229.6	1.74
2013	7.4	1.7	233.05	1.50
2014	6.2	2.6	234.81	0.76
2015	5.3	2.9	236.52	0.73
2016	4.9	1.5	241.43	2.08

Using the data provided on, graph GDP growth rate, the inflation rate and the unemployment rate from 1980-2016 on a single graph. Interpret these data. I don't need the graph I really just need the interpretation. Please and thank you.

Answer 1

The gdp growth rate has direct impact on inflation and inverse relationship with unemployment. When gdp increases it means there is more demand and output in the economy so more people get employed reducing unemployment . A rise in employment raises prices in the economy increasing inflation rate in the economy. Consider 2008 , in the previous year gdp growth is negative unemployment increases drastically because people are not getting job contributing less to economic growth inflation will rise because of reduced supply and lack of availability compared to the demand in the economy causing a high cpi index.