14. a. [4 marks} What are the main costs of ination it' there is complete adaptation and full anticipation? b. {2 marks} Explain what is meant by hysteresis. c. (ti marks} Explain the short run relationship between ination and unemployrneot {the short run Phillips curve}. d. {ti marks] What is the relationship betWeen ination and unemployment in the long run? Clearly explain why the shape of the long run Phillips crave is different to that of the short I'lJJl Phillips curve. e. [ti marks} Derive the dynamic aggregate demand curve {AD curve where ination is on the 1Irertical axis and output on the horizontal axis} using the ii curve. f. {6 marks] Assurae there is a positive demand shock n_ot caused by monetaryr policy. Using the AD, short run aggregate supply and long run aggregate supply curves show how long run equilibrium may be achieved after the shock