(Answered) State what do you conclude about the trend of each variable? Specialemphasis should be given to the…

➤ Why did inflation accelerate after 2020 even as unemployment remained high early on?
Inflation accelerated because massive fiscal and monetary stimulus boosted demand while COVID disrupted production and logistics. Labor shortages and rising commodity prices lifted wages and input costs. Base effects from a low 2020 CPI also magnified year-on-year rates. High unemployment early on did not prevent later price increases once demand recovered faster than supply.