1. For Finland obtain data on unemployment and inflation over the period 1981 to 2014 from the European Economy European Commission Web address 2. For Finland graph the unemployment and inflation data and comment on the relationship. This commentary should not be more than 100 words. 3. Estimate the original Phillips Curve. This is achieved by deriving the scatter plot and the line of the best fit of unemployment against inflation. Present the empirical results in a graph and briefly comment on your findings.
• Now estimate the augmented Phillips Curve
• Present the empirical results in a table (graph not required)
• Use your estimates to derive the natural rate of employment and comment on your findings
• Overall section 3 should not exceed 200 words