Show the effect of an increase in the natural rate of unemployment on both the long-run and short-run Phillips curves. Assume the graph represents the short-run and long-run Phillips curves before the increase in the natural rate of unemployment. 1.) Using the line drawing tool, show the effect of a higher natural rate of unemployment by drawing either a new short-run Phillips curve, a new long-run Phillips curve, or both. Label your curve(s) either 'SRPC₂' or 'LRPC₂." 2.) Using the point drawing tool, indicate the new long-run equilibrium. Label your point 'e₂." Carefully follow the instructions above and only draw the required objects. Use your graph to explain how the increase in the natural rate of unemployment lessens the effect of high unemployment on the inflation rate. With the higher natural rate of unemployment, the inflation rate is at the long-run equilibrium. Did the high unemployment rates during and immediately after the recession of 2007-2009 turn out to be permanent? Since the recession of 2007-2009, unemployment rates have O A. fallen to about 4.3 percent. OB. increased above 10 percent. O C. fallen to zero, which is the natural rate of unemployment. O D. remained high at about 10 percent. LRPC₁ e₁ Unemployment rate SRP

Consider the model of unemployment with job separation rate s = 0.05 and job finding rate f = 0.20. If the unemployment rate U = 10,000, L = 200,000, and E = 190,000 then what will the natural rate of unemployment be? Please show your calculation. If U were to fall to 5,000 because of an exogenous shock, how would the unemployment rate change in the short run? In the long run? If s were to fall to 0.03 because of an exogenous shock, how would the unemployment rate change in the short run? In the long run?

Can you please help me with D) and E) please and thanks.

Consider the Friedman-Phelps model of the Phillips Curve as discussed in lecture. Assume the economy is currently at Y-full employment. When the Fed sells government securities to the public, and there are no other exogenous shocks to the economy, which one of the following is predicted to happen? The actual inflation rate increases, and the unemployment rate increases permanently. O The actual inflation rate increases, and the unemployment rate increases first and then gradually goes back to the natural rate of unemployment. O The actual inflation rate decreases, and the unemployment rate increases first and then gradually goes back to the natural rate of unemployment. The actual inflation rate decreases, and the unemployment rate increases permanently. The actual inflation rate decreases, and the unemployment rate decreases first and then gradually goes back to the natural rate of unemployment.