An article in the Economist on the Phillips curve stated (about the US economy): After the financial crisis unemployment soared to 10 percent. This [surplus] of workers should LRPC, have sent inflation tumbling. But prices held up well; in October 2009 when unemployment peaked, underlying inflation was 1.3 percent, only a little lower than it is today. Some economists explained this by saying that the natural rate of unemployment had gone up in tandem-in other words, that some of the rise in joblessness was permanent. Source: "Finding Phillips," The Economist, June 17, 2017. e1 Show the effect of an increase in the natural rate of unemployment on both the long-run Inflation rate and short-run Phillips curves. Assume the graph represents the short-run and long-run Phillips curves before the increase in the natural rate of unemployment. 1.) Using the line drawing tool, show the effect of a higher natural rate of unemployment by drawing a new short-run Phillips curve, a new long-run Phillips curve, or both. Label your curve(s) either 'SRPC?' or 'LRPC2." 2.) Using the point drawing tool, indicate the new long-run equilibrium. Label your point 'e2.' SRPC, Unemployment rate Carefully follow the instructions above and draw only the required objects. Use your graph to explain how the increase in the natural rate of unemployment lessens the effect of high unemployment on the inflation rate. With the higher natural rate of unemployment, the inflation rate is at the long-run equilibrium. Did the high unemployment rates during and immediately after the recession of 2007-2009 turn out to be permanent in Canada? Since the recession of 2007-2009, unemployment rates have