If answer can be wrote clearly will be perfect, thank you.

Problem 1. (20 points} Country A has the following Philips Curve: 5!) b) c} d) rr= E1I- 0,5 (Lt0.06) What is the natural rate of unemployment for Country A? Graph the short-run and long-run relationship between ination and unemployment. Assume that the social cost of unemployment and ination is described by the following loss function: L = u + 0.0517:2 The central bank would like to minimize this loss. Calculate the optimal level of ination that minimizes this loss mction. i) Define the sacrifice ratio. ii) Assume that the ination rate in both country A and country B is higher than the optimal ination rate you obtained in part c). The public in country A believes that their policymakers are committed to targeting the optimal ination rate you obtained in part c), while the public in country B is skeptical about their policymakers' intention to reduce ination and achieve the optimal ination rate. According to the rational-expectations approach, the sacrice ratio will be lower in country A than in country B. Explain why this might be true