1. What is the relationship between unemployment and inflation when AS shifts? Why?
2. Set up a correctly labeled Phillips Curve graph to begin each scenario. Then, show and explain what happens to the Phillips curves in each scenario. Assume the natural rate of unemployment is 5%. When showing a movement along the curve, label the initial point, A, and the new point, B.

a. Government spending increases.

] b. The price of crude oil decreases.

c. The government increases the time that a worker may remain on unemployment compensation.