Part I. The data shown below are in the form of quarterly year-over-year percentage changes for the US over the period 2018:1 to 2021:4. The series shown in the table are the M2 money supply, k, the ratio of M2 to nominal GDP and the consumer price index. Plotted in the chart is the CPI. Use these data as background for your answers to the following questions. Note further that the monthly figures for annualized year-over-year CPI inflation in November 2021, December 2021 and January 2022 were 6.8, 7.1 and 7.5 per cent respectively. (60 points) M2 k CPI 2018 1 4.19 -0.93 2.22 2 3.95 -1.98 2.69 3 3.84 -1.69 2.64 4 3.48 -1.15 2.21 2019 4.09 -0.17 1.62 4.34 0.43 1.84 5.25 1.11 1.77 4 6.68 2.35 2.02 2020 7.88 5.47 2.10 20.63 31.85 0.44 23.38 25.51 1.25 24.29 25.54 1.20 2021 1 25.72 22.55 1.90 2 14.91 -1.58 4.81 3 12.95 2.90 5.29 4 12.89 0.99 6.72FRED - Consumer Price Index for All Urban Consumers: All hers In U.S. Chy Average Percent Change from Year Ago Ju1 2017 Jan 2018 Ju1 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 J 2021 Jan 20.. Shaded areas Indicate U.S. recessions. Source: US. Bureau of Labor Statistics myf.red/g/MBz One commentator writes: "There is a widespread view among officials at the Federal Reserve System, among economists in the Biden Administration, among academics (led by people like Paul Krugman, who claims to be a spokesman for 'Team Transitory") that the current bout of U.S. inflation is: 1. Largely the result of supply chain disruptions which 2. By their nature will turn out to be *transitory'; and 3. As a result, the inflation will melt away in 2022 as the supply chain issues are addressed and resolved." (1) Use the quantity theory and the data presented above to critique the Team Transitory poisition. (2) Given the data presented above provide a forecast of inflation for this year under the assumption that real GDP growth and k growth both averages 2 per cent per annum and M2 growth continues at roughly its current rate.. (3) An argument made by some Team Transitory members is that inflation will have to get back to 2 per cent per annum or so because real GDP and employment remain weak in comparison to their lon,g-term equilbrium levels. Critique this view given what you know about theempirical performance of the Phillips Curve