Question: Good explanations please! (b) The third version of the Phillips curve relates inflation to output: I = n' + BY +z the slope of this

Good explanations please! (b) The third version of the Phillips curve relates inflation to output: I = n' + BY +z the slope of this Phillips curve is given by B=b x Y"/ EL. Give an intuitive interpretation of the new terms that have appeared in the

Good explanations please!

Phillips curve and in the slope term since part (a).i. Assume the

natural rate of unemployment is 5% and the production function is Y:

EN. Calculate the slope of the Phillips curve if b: 1 and

A = 1/ 2. Contrast this with your answer from part (a

(b) The third version of the Phillips curve relates inflation to output: I = n' + BY +z the slope of this Phillips curve is given by B=b x Y"/ EL. Give an intuitive interpretation of the new terms that have appeared in the Phillips curve and in the slope term since part (a).i. Assume the natural rate of unemployment is 5% and the production function is Y: EN. Calculate the slope of the Phillips curve if b: 1 and A = 1/ 2. Contrast this with your answer from part (a - i]. ii. Assuming the same production function as above, calculate the slope of the Phillips curve if b = 1 and A = 1/ 3. Contrast with (a - ii]. iii. Calculate the slope of the Phillips curve if b =2 and A = 1/2. Contrast with (a iii)

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