The Phillips curve for a particular economy is it = it. + (m +z) -au, where m =0.278, z=0.073, a = 2 and suppose inflation expectation is anchored at 3%, i.e. x. = =3%. If the unemployment rate today (u,) is 11%, what is the observed inflation rate at time t? What is the value of the difference (ut - un )? Use decimals for the percentages in your calculations. O A. TH = 17.1%; ( ut - Un) = -5.6% O B. TH = 16.1%; (Ut - Un) = -6.6% O C. TH = 19.1%; (U1 - Un) = -4.6% O D. TH = 14.1%; (U1 - Un) = -3.6%