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5. You're a junior consultant at a management consulting company and your team has been hired to help guide a struggling regional retailer. You do some research and find that the output gap is currently zero, and inflation is 4%. In an effort to boost output before the next election, the government announces an unexpected stimulus package that you expect will increase next year's output to be 5% above potential. Unexpected Inflation Phillips curve 26 OK -1% -2%% -10% -5% 5% 10% Output gap Stevenson/Wolfers, Principles of Economics, le, @ 2020 Worth Publishers a. Use the Phillips curve to estimate unexpected inflation after the stimulus. b. What is your forecast for actual inflation after the stimulus? c. How do you advise the retailer when they ask you how they should change prices next year, given the stimulus will have boosted output