The natural rate of unemployment is 3% (20 points) The graph below illustrates the short-run Phillips curve for an economy when the expected rate of inflation is 0%. a. (5 points) What is the natural rate of unemployment for this economy? Explain in your answer also the concept of the natural rate. b. (5 points) Suppose that unemployment at the current level of GDP is 5%. What is the expected rate of inflation? How does this affect the short-run Phillips curve? What will happen if policymakers act to keep unemployment at 5%? c. (5 points) Suppose that the government decides to pursue an unemployment rate of 2%? How could they do that? What will happen to the short-run Phillips curve? Explain. d. (5 points) What is the long-run Phillips curve for this economy? Explain in your answer how the long-run Phillips curve differs from the short-run Phillips curve