Assume the Phillips curve is given by the simple equation u=r+14 The nonaccelerating rate of unemployment is 1G percent. a- If inflation changes to '12 percent, what will be the unemployment rate in the short run? Instructions: Enter your answer as a whole number. |:| percent b. What will it be in the long run? Instructions: Enter your answer as a Iwhole number |:| percent. Assume the Phillips more is giyen by the simple equation U = | + 20. The nonaccelerating rate of unemployment is 112) percent. a- If inflation changes to 15 percent, what will be the unemployment rate in the short run? Instructions: Enter your answer as a whole number. |:| percent b. What will it be in the long run? Instructions: Enter your answer as a whole number |:| percent \"Monetary policy is incredible," your friend says. \"Just a little manipulation ofthe money supply and interest rates, and we end up at just the right price level and amount of output.\" Is your friend overstating the central bank's control over price levels and output? 0 Your friend is understating the effectiveness of monetary policy by focusing on the short run. 0 Your friend is understating the effectiveness of monetary policy by not distinguishing between the short run and the long run. 0 Your friend is overstating the effectiveness of monetary policy by not distinguishing between the short run and the long run. 0 Your friend is overstating the effectiveness of monetary policy by focusing on the long run