Explain how large scale structural change mightinfluence the short-run and long-run Phillips curves.Will the influencecome from changes in the expected inflation rate,the natural unemployment rate, or both?

Because the Fed doubled the monetary base in 2008and the government spent billions of dollars bailingout troubled banks, insurance companies, and autoproducers, some people are concerned that a seriousupturn in the inflation rate will occur, not immediatelybut in a few years time. At the same time, massivechanges in the global economy might bring theneed for structural change in the United States.