Suppose the Phillips curve is represented by the following equation: π t - π t-1 = 20 - 2 ut. Given this information, we know that the natural rate of unemployment in this economy is:Question 9Select one:a.6.5%.b.10%.c.4.5%.d.20%.e.5%.

Use the following Phillips curve equation to answer this question:πt - πt-1 = (m + z) - αut.Which of the following will cause a reduction in the natural rate of unemployment?Select one:A.an increase in expected inflationB.an increase in mC.a reduction in αD.a reduction in z

The Phillips curve illustrates the relationship between:Question 27Answera.Unemployment and inflationb.Aggregate demand (AD) and aggregate supply (AS)c.Interest rates and investmentd.Income and consumption

If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all?    What will happen if the unemployment rate now rises to 7 percent per year? Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion. Your discussion should be at least 500 words in length, but not more than 700 words. Use APA citations and references if you use ideas from the readings or other sources.

The following two charts display the relationship between the unemployment rateand (CPI) inflation for the US, separated into two different historical periods:The third figure charts econometric estimates of the US Phillips curve coefficientfor the period 1981-2018:Macroeconomic Analysis (ECON7074) Page 2 of 3(The first two charts are lifted from “Can the Phillips Curve Help Forecast Infla-tion?” by Kevin Lansing (FRBSF Economic Letter, 2002); the third chart is takenfrom “Prospects for inflation in a high pressure economy: Is the Phillips curve dead oris it just hibernating?” by Peter Hooper, Frederic Mishkin, and Amir Sufi (Researchin Economics, Vol 74, Issue 1, March, 26-62.)a) Briefly interpret these graphs. (4 points)b) Give some possible sensible explanations, or reasons, why the slope of the re-gression line in figure 1 is steeper than the slope of the regression line in figure2 and why the Phillips curve coefficient in figure 3 has fallen (in absolute terms)since its low in 1995. (8 points)c) What does the Australian Phillips curve look like and how does it compareto the US experience? (You will have to do a little independent research. Agood place to start looking for research on this topic is the Reserve Bank ofAustralia.) (4 points)

The hybrid Phillips Curve assumes inflation is determined as follows: π=πę-b×(ut-u)+Et, where mę=(1-)T-1 +Et[t+]. The parameterb corresponds to the slope of the Phillips Curve,(1-Y)governs how inertial inflation is,and e captures cost-push shocks.If unemployment lowers inflation all else equal and inflation expectations are largely backward looking,what should be true about the parameters of the hybrid Phillips Curve? O There is insufficient information to place restrictions on the parameters. 6>0 andy<0.5 O6<0 and y<0.5 ○b>0andy>0.5 ○b<0andy>0.5