Question 8 [20] 8.1. Provide a detailed explanation of the Phillips curve. Your explanation should include the definition and what is meant by a "trade-off" between inflation and unemployment. (3) 8.2. Suppose that South Africans strike in order to increase the minimum wage rate. 8.2.1. In the situation where the labour force partake in strikes, will this affect aggregate demand or aggregate supply? Explain. (1) 8.2.2. Use the AD-AS model to illustrate the impact of strikes on the general price level and the level of real production and income in the economy. (6) 8.2.3. The AD-AS model in 8.2.2 illustrates the type of inflation known as cost-push inflation. Do you agree with this statement? Substantiate your answer. (2) 8.2.4. Using the Phillips curve, illustrate how cost-push inflation affects the relationship between unemployment and the inflation rate. (6) 8.2.5. Which phenomenon is illustrated in 8.2.4? Explain your answer with reference to the unemployment and inflation rates.