Question 3 A reduction in the Fed's target rate (iff) that shifts LM down will shift nothing in Blanchard's WS-PS graph and in the Phillips Curve graph O Shift PC up O Shift PC down O Move along PC to lower u O Move along PC to higher u Question 4 The role of expected productivity (A) in the model is to ... O Affect how much compensation labor attempts to negotiate and thus shift WS but move along PC O Affect how much compensation labor attempts to negotiate and thus shift WS and PC O Affect how firms set prices and thus shift PS but move along PC O Affect how firms set prices and thus shift PS and shift PC