Please answer ASAP. explain briefly how you got the answer. Will rate positively. :) 15 Question 3The graph belowillustrates the short-run and long-run Phillips curve for a hypothetical economy. Initially, the actual and expected inflation rate is10%, and the unemployment rate is 8% (the natural rate of unemployment).Phillips CurveInflation15LRPC151413121110SRPC1 SRPC2UnemploymentPart 1.Suppose the central bank announces it will pursue expansionary policy to change the inflation rate to 14%. If the central bank pushesthe inflation rate to 14%, but the public still expects 10% inflation, the unemployment rate will be% in the short run.Part 2Now, suppose that the central bank still pushes the inflation rate to 14%, but the public expects 12% inflation. In this case, theunemployment rate will be% in the short run.Part 3Finally, suppose that under the same circumstances, the central bank pushes the inflation rate to 14%, and the public expects 14%inflation. In that case, the unemployment rate will be% in the short run.

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15 Question The graph below illustrates the short-run and long-run Phillips curve for a hypothetical economy. Initially, the actual and expected inflation rate is 10%, and the unemployment rate is 8% (the natural rate of unemployment). Phillips Curve Inflation 15 LRPC 15 14 13 12 11 10 SRPCI SRPC2

15 Question The graph below illustrates the short-run and long-run Phillips curve for a hypothetical economy. Initially, the actual and expected inflation rate is 10%, and the unemployment rate is 8% (the natural rate of unemployment). Phillips Curve Inflation 15 LRPC 15 14 13 12 11 10 SRPCI SRPC2

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: The Short-run Trade-off Between Inflation And Unemployment

Section: Chapter Questions

Problem 1PA

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