Don't know anything?!?!?! Regression Question

[noncents]

Alright so my class is making us used the student version of the eviews and I have not a clue as to how to do anything.

This is what the first question is asking for.

The Philips Curve refers to the historical relationship between unemployment and inflation in an economy. The relationship is typically negative; that is, on average, higher unemployment rates have (historically at least) been associated with lower rates of inflation.
1. estimate a regression equation using an inflation series and unemployment rate for our (fictional) country called Atlantis.
Interpret the results of the regression.

2. What is the new coefficient on current unemployment when lagged unemployment is included in the regression?


So, for part 1, am I simply just running two different regressions(inflation series, unemployment rate) or am I running one regression that those two are my Y and X variables? If that's the case, how do I know which is which?

Part 2, I'm guessing I insert a dummy variable and see how that affects the original regression/s?

Any help(or links to videos) would be greatly appreciated!

Side note, this is my first class in nearly 6 years, so it's been a while. Sorry if my questions are too "noob" like.

[CharlieEVIEWS]

Answer to 1: Just one equation. The first variable that you 'click' will always be your dependent variable. I.E. highlight your inflation series, then hold CTRL and highlight unemployment, and right click --> estimate equation ---> inflation is your "Y" variable because you clicked it first.

Answer to 2: Run the same equation, but on the right hand side include unemployment and unemployment(-1) in the specification box (right click --> estimate equation --> add in here).

Charlie