Suppose that there is an economy in long-run equilibrium with an inflation rate () of 0.08 per year and a natural unemployment rate of 0.05. Assume that Okun's law holds and a one percentage point increase in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve is given by : =e2.5(u0.05). Consider a two-year disinflation. In the first year, =0.06 and e=0.08. In the second year, =0.04 and e=0.05 a. In the first year, what is the value of the unemployment rate? b. In the first year, by what percentage does output fall short of full-employment output? c. In the second year, what is the value of the unemployment rate? d. In the second year, by what percentage does output fall short of full-employment output? e. What is the sacrifice ratio for this disinflation