Activity 01
Data Analysis: Graphing Stagflation
Provide students with annual data for inflation, unemployment, and GDP growth from 1965 to 1982. Students create line graphs showing all three indicators and identify the years when stagflation was most severe. Pairs write a paragraph explaining why simultaneous high inflation and high unemployment was so confusing for economists who relied on the Phillips Curve.
Analyze the causes and consequences of 'stagflation' in the 1970s economy.
Facilitation TipDuring the Graphing Stagflation activity, circulate with guiding questions like 'What pattern do you notice between 1973 and 1975?' to help students interpret the data themselves.
What to look forProvide students with a short graph showing US unemployment and inflation rates from 1970-1980. Ask them to: 1. Identify the period of highest stagflation. 2. Write one sentence explaining why this period was challenging for policymakers.