a ) ( 2 pts ) If the equation for a country's Phillips curve is it = 0.02 - 07 ( 1 - 0 055 ) , where It is the rate of inflation and u is the unemployment rate , what is the short -run inflation rate when unemployment is 58 percent ( 0.058 ) ? b ) ( 2 pts ) Assume that an economy has adaptive expectations with a Phillips curve It = jo 0 . 4 ( 1 0 06 ) . How many percentage points and years of cyclical unemployment are needed to reduce inflation by 2 percentage points ? ( ) ( 3 pts ) Describe the difference in assumptions between Adaptive Expectations and Rational Expect ation ? How does this difference impact the Federal Reserve Bank 's ability to reduce inflation