54. Suppose the economy is operating below potential output. Inflation is 2% and expected inflation is 3%. The unemployment rate is 8% and the natural unemployment rate is 4%. a. Draw a long-run Phillips curve and a short-run Phillips curve consistent with these conditions. The government implements expansionary monetary policy. As a result, unemployment decreases to 6% and inflation increases to 2.5%. Expectations however, do not change. Show where the economy is on the graph you drew for (a) above. What happens to the long-run Phillips curve? Expectations now fully adjust. Show this on the graph in (a) above. What happens to the short- run Phillips curve