4.2. Do Mankiw, chapter 13, exercise 6. It helps to assume that the economy starts in a steady state with inflation t' and unemployment u, and to construct a table showing how , ul and u have to evolve through time. You may find it hard to work out what happens exactly in the long run. Don't worry too much if so the arithmetical relation below may help. 1/2-1/4 + 1/8 - 1/16 + 1/32 -.... = 1/3 4.2. Do Mankiw, chapter 13, exercise 6. It helps to assume that the economy starts in a steady state with inflation t' and unemployment u, and to construct a table showing how , ul and u have to evolve through time. You may find it hard to work out what happens exactly in the long run. Don't worry too much if so the arithmetical relation below may help. 1/2-1/4 + 1/8 - 1/16 + 1/32 -.... = 1/3