10.5 The Phillips curve Part 1 - the Short-run Phillips Curve: On the Phillips Curve diagram below, place values ranging from -2% to 7% on the vertical axis and 0% to 10% on the horizontal axis. Label the axes appropriately to show the short-run tradeoff that a country faces between unemployment and inflation. o For each of the scenarios below, draw a point on your the diagram and label it with the letter corresponding with the scenario it illustrates. Connect the points that together make up a single short-run Phillips Curve. 0 If the scenario describes something that would shift the Phillips Curve, draw a new curve and label it with the appropriate letter. 0 Some scenarios will lead to the same outcome as others; in these cases put multiple letters next to each point. 0 Provide a brief explanation of why each scenario leads to the change you identified. Scenarios