Question: Assuming Okun's law i s given b y U - U n = - 0 . 7 5 ( Y - Y p ) and

Assuming Okun's law is given byU-Un=-0.75(Y-Yp) and that the Phillips curve is given
by=e-0.6(U-Un)+,
a. Obtain the short-run aggregate supply curve if expectations are adaptive, inflation was
3% last year, and potential output is $10=0 $8,$10, and $12 trillion and plot the short-run
aggregate supply curve
c.If a trade war increases prices by1 percentage point, what would happen to the short-run
aggregate supply curve you've drawn in(b)?
Assuming Okun's law i s given b y U - U n = - 0 .

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