9  Consider the AD-AS model: (a) Explain with your own words what is the Phillips Curve. (b) Starting from the price and wage setting equations derive an expression for the Phillips Curve. (c) Explain the role of expectations in the Phillips Curve. Compare the cases of adaptive expectations and rational expectations and explain what are the implications for the monetary policy maker.Consider the AD-AS model: (a) Explain with your own words what is the Phillips Curve. (b) Starting from the price and wage setting equations derive an expression for the Phillips Curve. (c) Explain the role of expectations in the Phillips Curve. Compare the cases of adaptive expectations and rational expectations and explain what are the implications for the monetary policy maker.

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