homework question

Consider the following Phillips curve: 2 Unemployment reta a) The economy is currently at point A with unemployment of 6% and inflation of 4%. The President has informed you that she is about to undertake an expansionary fiscal policy designed to lower unemployment from its current rate of 6% to 4%. She asks you what will happen in the economy as a result of your policy. Explain what will happen and show it on the above graph. b) How would your answer to a) change if you were to consider potential changes in inflation expectation by the public and their impact on the actual inflation? Explain and show how this will impact the above graph