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Assume that the United States economy is currently in a short-run equilibrium with the actual unemployment rate above the natural rate of unemployment. a.

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Assume that the United States economy is currently in a short-run equilibrium with the actual unemployment rate above the natural rate of unemployment. a. Draw a single correctly labeled graph with both the long-run Phillips curve and short-run Phillips curve. Label the current short-run equilibrium point P. b. Assuming no policy actions are taken, will the short-run Phillips curve shift to the right (upward), shift to the left (downward), or remain the same in the long run? Explain.

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