Macroeconomics 12th Edition by Michael Parkin

Exercise 7

Eurozone Unemployment Hits Record High As Inflation Rises Unexpectedly Eurozone unemployment rose to 10.7 percent. At the same time, eurozone inflation unexpectedly rose to 2.7 percent a year, up from the previous month's 2.6 percent a year. Source: Huffngton Post, March 1, 2012
a. How does the Phillips curve model account for a very high unemployment rate
b. Explain the change in unemployment and inflation in the eurozone in terms of what is happening to the short-run and long-run Phillips curves.