(1) The Phillips curve represents the relationships between the inflation rate, expected inflation rate, markup, z, and unemployment. Explain the relationships. (Which variables have positiveegative relationships with the inflation rate?) Consider the following Phillips curve 1=n't (m+ =) - au Suppose the expected inflation rate is anchored at 5%. Also, the markup, z, and a are given by 0.03, 0.02, and 0.4 respectively. (2) Calculate the natural rate of unemployment rate (Side note) Check that we can rewrite the given Phillips curve to get the Phillips curve represented with the deviation from the natural rate of unemployment IT - 7= ( - m+z = a(un - u) = -o(u - un)(5) Draw the relationship in (u, n) plane. (6) Suppose the economy is at point (0.05, 0.08), which of the following is true? a) The economy is producing at the potential GDP b) The current unemployment rate is lower than the natural rate of unemployment rate c) The expected rate of inflation would be lower than 5% d) None of the above