4. Figure 15.5 shows a nation's short-run and long-run Phillips curves. In this nation, the natural unemployment rate equals 6 percent and the actual and expected inflation rate is 20 percent. The nation's government decides to take actions to lower the inflation rate to 10 percent. a. In the figure, show what happens in the short run when the expected inflation rate does not change from 20 percent. Indicate the combination of the inflation rate and unemployment rate by labeling it point A. b. In the figure, show what happens in the short run when the expected inflation rate falls to 10 percent. Draw any new Phillips curve you need and indicate the new inflation rate and unemployment rate combination by labeling it B