EXERCISE 15.5 INFLATION, EXPECTED INFLATION, AND THE BARGAINING GAP Use the same axes as in Figure 15.10 to plot inflation, expected inflation, and the bargaining gap in a single diagram. Assume that the price level is constant in period zero. The economy is hit by a recession at the beginning of period 1 and unemployment remains at a constant high level until the beginning of period 6. 1. Plot the path of the bargaining gap. 2. Plot the path of inflation and expected inflation. 3. Give a brief explanation of why the bargaining gap might have disappeared and state any other assumptions you are making. Summarize your findings