The 'Misery Index', created by economist Arthur Okun, is a simple macroeconomic indicator calculated by adding the annual rate of ___ to the annual rate of unemployment.

Answer: inflation

The Misery Index is designed to capture the dual economic pain felt by the average citizen. High unemployment causes the distress of lost income and job insecurity, while high inflation erodes the purchasing power of whatever income remains. A rising Misery Index often serves as a potent political indicator of public dissatisfaction with the incumbent government's economic management.