The following graph plots aggregate demand {ADM} and aggregate supply {A5} for the imaginary country of Patagonia in the year 202?. Suppose the natural level of output in this economy is $6 trillion. On the following graph, use the green ne (tn'ahgte symbol) to ptot tne tongrun aggregate suppfy (LR/AS) curve for this economy. ('2) me A 107 LRAS ms )3: 105 Outcome C 104 PRICE LE'u'EL 103 102 101 100 El 2 4 6 S 10 12 14 16 OUTPUT [Trill ions of dollars] Economists forecast that if the government takes no action and the economy continues to grow at the current rate, aggregate demand in 2028 will be given by the curve labeled ADA, resulting in the outcome given by point A. If, however, the government pursues an expansionary policy, aggregate demand in 2028 will be given by the curve labeled A33, resulting in the outcome given by point B. The following table presents projections for the unemployment rates that would occur at point A and point B. Consider the potential rate of inflation between 202? and 2028, depending on whether the economy moves from the initial price level of 102 to the price level at outcome A or the price level at outcome B. Complete the table by entering the inflation rate at each potential outcome point. Note: Calculate the inflation rate to two decimal points of precision. Unemployment Rate Inflation Rate A 7% B 5%Based on your answers to the preceding parts, use the black line (plus symbol) to draw the short-run Phillips curve (SRPC) for this economy in 2028. (Note: You will not be graded on any changes you make to this graph.) CO + SRPC A LRPC INFLATION RATE (Percent) N 0 2 3 5 7 8 UNEMPLOYMENT RATE (Percent)The shortrun Phillips curve is V line: 0 At the natural rate of unemployment O Representing the tradeoff between unemployment and inflation 0 At the natural level of output Now consider the longrun effects of this policy. Suppose, in particular, that following implementation ofthe policy, the aggregate demand curve remains at ADE. The longrun equilibrium that would follow such a policy is designated outcome [3. Golng hack to the rst graph, place the grey point (star symbol) at outcome C. Because output at point C is V the natural level of output, the unemployment rate associated With outcome [3 is v the natural rate of unemployment. Finally, use the green llne (triangle symbol) to draw the long-run Phrllfps curve (LRPC) on the second graph. This line is V line: 0 Representing the tradeoff between unemployment and inflation 0 At the natural level of output 0 At the natural rate of unemployment