For this assessment, you will want to be able to: 1. Explain the short-run relationship between the unemployment rate and inflation rate (Phillips Curve). Point Value: 30 points Min. Required Score: 80% Allowed Attempts: 2 Grading Time: 3 days Directions There are three parts to this assessment. You are required to submit images for two parts. These images can be created using software or by hand (for partial credit). If you choose to create the diagrams by hand, it is your responsibility to take a clear picture or scan of the image and submit it along with your answers. Please don't submit the images as a separate document. Complete all parts of the assessment before submitting it for evaluation The Phillips curve depicts the relationship between inflation and unemployment rates. .Draw a graph with the inflation rate on the Y (vertical) axis and unemployment rate on the X (horizontal) axis. Plot the points to illustrate the following scenario: The inflation rate is 5%, and the unemployment rate is 4% (Point A). The government takes measures to reduce inflation to 2%, and the unemployment rate rises to 7% (Point B). In one paragraph, explain why there is an inverse relationship between unemployment rates in the short run. How would a decrease in energy prices affect the Phillips curve in the short run? What happens to unemployment and inflation? Include a graphical illustration of your answer. Evaluation Arubric for this assignment is located below the instructions SUBMISSION