1.Draw the initial effect of Demand-Pull inflation.Show the effect on real GDP and Price Level.(Be sure to label everything)

2.Draw the initial impact of Cost-Push inflation.Show the effect on real GDP and Price Level.(Be sure to label everything)

3.What will initially happen to price level and real GDP with

a.Demand-Pull Inflation?

b.Cost-Push Inflation

4.What does the Phillips curve show the relationship between?

5.a. What will happen to the short-run Phillips curve with an increase in the expected inflation rate?

b. What will happen to the long-run Phillips curve with an increase in the expected inflation rate?

6.If the natural unemployment rate decreases, what will happen to

a.The Long-Run Phillips curve?

b.The Short-Run Phillips curve?