The Fed's newest governor sees America's inflation pop as temporary. Christopher Waller, the newest governor on the Federal Reserve's Washington-based board, said on Friday that he expects an unfolding acceleration in inflation which is expected to intensify in the coming months will prove short-lived. "I do buy into the idea that this is going to be temporary," Mr. Waller said on CNBC, during his first television interview since President Donald J. Trump nominated him to the role and the Senate confirmed him. "Whatever temporary surge in inflation we see right now is not going to last." (i) Provide two arguments to justify the belief that the recent increase of the Consumer Price Index may prove temporary? (ii) Provide two arguments in favor of inflation breaching the expectations of the Fed. (iii) Draw an aggregate demand and supply curve to correspond to your arguments in (i). Draw an aggregate demand and supply curve to correspond toyour arguments.