The government spent $10,000 to buy new computers from IBM. If MPC = 0.8 and there is no crowding out, how is AD curve affected? Suppose that the natural rate of unemployment is 5%, the expected inflation is 4%. Also, to decrease unemployment rate by 1% the inflation increases by 2% in the short-run. .Write down the equations for the short-run and long-run Phillips curves. # of employed # of unemployed not in labor force 120 million 5 million. 9 million