Question

the graphs show the us unemployment rate and the price of whole milk between 2006 and 2012. what do these graphs indicate about the relationship between employment levels and prices during economic cycles? there is no link between prices and unemployment rising unemployment rates drive prices higher. falling prices drive unemployment rates lower. as unemployment rates rise, average prices fall.

Explanation:

By observing the two graphs, as the US unemployment rate rises from 2006 - 2009, the price of whole milk first rises and then falls. But overall, when unemployment is rising significantly, average prices show a downward - trend pattern. This indicates an inverse relationship between unemployment rates and average prices.

Answer:

As unemployment rates rise, average prices fall.