Do the data for 2010 fit okuns law

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The text Web site has U.S. data on output, unemployment, and inflation from 1960 through 2010, along with estimates of potential output and the natural rate of unemployment. Focus on the data for the year 2010.

a. Do the data for 2010 fit Okun's law? (The relationship is graphed in Figure)

b. Do the data for 2010 fit the unemployment Phillips curve? (The relationship is graphed in Figure)

c. If you find deviations from Okun's law or the Phillips curve in 2010, what might explain the deviations?

1676_Figure 9.jpg

Reference no: EM131221641

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