Suppose the natural real GDP is constant at $100 with 4% inflation rate. Given the following table.

OutputInflation

RatioRate

962%

983%

1004%

1025%

1046%

An inverse supply shock raises the inflation rate associated with every output ratio increases by 2%. Graph the SP curve and complete the following table.

Inflation RateOutput Ratio

Accommodating Policy_____________________

Natural Policy _____________________

Extinguishing Policy _____________________