1. First describe/define unemployment and inflation, recognizing that there are different types of unemployment and inflation. In your answer also speak to core inflations and the natural rate of unemployment.
2. Outline the Phillips Hypothesis in some detail. You should recognize that the theoretical relationship has been questioned based on US experience in the 1970s.
3. Use the information provided to conceptually distill the relationship between inflation and unemployment in Figures 1, 2 and 3. You should put forward arguments that are both for and against the Phillips Hypothesis paying attention to the data provided for 1947-2020, 1947-1959, 1960-1979, 1980-1999, 2000-2010 and 2011-2021, before making your conclusion.
