.Suppose that the U.S. economy fully recovers from the 2008-2009 recession but the natural unemployment rate has risen to 8 percent and the expected inflation rate is zero. How would the short-run and long-run Phillips curves change? Would the tradeoff be more favorable or less favorable than that of 2011? Draw a graph to illustrate your answer.
2.In an economy, the natural unemployment rate is 4 percent and the expected inflation rate is 3 percent a year. Draw a graph of the short-run and long-run Phillips curves that display this information. Label each curve.
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