Unemployment, Inflation, Economic Performance, Phillips Curve

Assignment Instructions

There are four questions to be answered. Word limit max 750 per question

Question 1

Explain the Phillips curve that describe a relationship between unemployment and inflation

Question 2

Answer whether you do or do not agree with the typical trade-off relationship that you summarized in Question 1. Your answer must include the following:

• Comparison of two developed countries (OECD) members,  two developing countries. Calculate the coefficient and provide reflection on the Phillips curve theory.
• Relevant empirical data collected from official databases (IMF, World Bank, ADB, OECD, central banks of each country, official statistical database of each country) that support your answer.

Question 3

Same as Question 2, provide a Phillips curve analysis, explanation in the case of Japan. Then find a similarity with one developed country and one developing country.

Question 4

Conclude the relationship between unemployment and inflation based on your answer to Question 2 and 3. You must include a brief summary of your analysis in conclusion, followed by your opinion and further data.