The relationship between inflation and unemployment is given by =e2(uu). (a) Draw a diagram showing a long-run Phillips curve and two short-run Phillips curves that contain the following points: A:=.03,e=.03 B: =.06,e=.06 C:=.03,e=.06 D:=.06,e=.03 Label points A,B,C, and D in your diagram. The unemployment rate at point A equals .05. (b) What are the values of the natural rate of unemployment and the unemployment rates at points B,C, and D ? The relationship between inflation and unemployment is given by =e2(uu). (a) Draw a diagram showing a long-run Phillips curve and two short-run Phillips curves that contain the following points: A:=.03,e=.03 B: =.06,e=.06 C:=.03,e=.06 D:=.06,e=.03 Label points A,B,C, and D in your diagram. The unemployment rate at point A equals .05. (b) What are the values of the natural rate of unemployment and the unemployment rates at points B,C, and D