Explain and illustrate with a graph the effects of the central bank of Brazil trying to lower the inflation rate by unexpectedly slowing the money growth rate. Explain how the unemployment rate will change in the short run and in the long run if the central bank persists with a lower money growth rate. Contrast the outcome with that for an expected slowing of money growth.

Use the following information to work Brazilian inflation and growth get worse

Brazil’s central bank has increased its inflation forecast to 9 percent and cut its forecast for real GDP growth, which it now says will be minus 1.1 percent.