Question 3: [20 marks] If the Phillips curve equation is given by: Unemployment Rate = 7 - 0.5 (actual inflation - expected inflation) a. [7 marks] Suppose at = actual inflation is 6 % and expected inflation = 2%. What is the actual rate of unemployment? What is the natural rate of unemployment? b. [6 marks] Draw the short run and long run Phillips curves on a single diagram and label the numerical values from part a