Sketch India’s short-run and long-run Phillips curves if the expected inflation rate rises from 5 percent per year to 7 percent per year and the natural unemployment rate is constant at 8 Percent.

Use the following information to work India seeks more reserved central bank, there is a conflict in India between politicians who want faster growth and lower unemployment, and the central bank governor who wants price stability. The government is replacing the central bank governor and possibly increasing its inflation target.