Inflation and unemployment

Question 1' a] Draw a diagram showing the short-run Phillips curve [SRFC] and the long-run Phillips oJrve [LRPC], assuming that expected and actual inflation is 4 percent, while the inflation target of the central bank is 2 percent. The unemployment rate is 5 percent. b} How can the central bank proceed to decrease ination to the target of 2 percent? What are the risks of such actions? c] Suppose that the actions of the oentral bank are successful, that is, they manage to bring down actual inflation to the target value. Use your figure from a} to illustrate this process. Explain. :1} Assume that the velocity of money is 1|], and that the expected annual growth in real GDP is 2 percent. Use the quantity equation to calculate the required policy response [in percent] to keep annual ination at the target value of 2 percent. What happens if the central bank does not conduct any policy in this situation