The relationship between inflation and unemployment is given by
π = π^e - 3(u - 0.06).
(a)Graph the long-run Phillips curve and three short-run Phillips curves.
(b)What is the value of the natural rate of unemployment?
(c)If actual inflation is 0.02 and expected inflation is 0.05,what is the unemployment rate?
(d)If actual inflation is 0.08 and expected inflation is 0.05,what is the unemployment rate?

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The Answer of The relationship between inflation and unemployment is given by π = π^e - 3(u - 0.06). (a)Graph the long-run Phillips curve and three short-run Phillips curves. (b)What is the value of the natural rate of unemployment? (c)If actual inflation is 0.02 and expected inflation is 0.05,what is the unemployment rate? (d)If actual inflation is 0.08 and expected inflation is 0.05,what is the unemployment rate?

The Relationship Between Inflation and Unemployment Is Given by