22 After you have studied Economics in the News on pp. 688689, answer the following questions. a...

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22 After you have studied Economics in the News on pp. 688–689, answer the following questions.

a Describe the course of the Eurozone inflation rate and unemployment between 2007 and 2016.

b What is the natural rate of unemployment for the Eurozone and how much of its unemployment is cyclical?

c What do you think has happened to inflation expectations in the Eurozone between 2007 and 2016 and why?

d How would you explain the fall in inflation and the fall in unemployment in the Eurozone during 2014?

e Why did the short-run Phillips curve shift in 2007?

f Why did the short-run Phillips curve shift back?

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