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Suppose the wage-setting equation is W=Pe(1u+b) where P6 is the expected price level, u is the rate of unemployment and b represents unemployment benets. The price-setting equation is P = (1 + m)W where m is the markup. 1. Find an algebraic expression for the natural rate of unemployment. 2. Draw the wage-setting and pricesetting lines on a diagram with u on maxis and W/ P on yaxis. Show the natural rate of unemployment in the diagram. 3. Suppose P6 = aP, where a