If gm,t = 6% initially, what is the medium run value of (inflation)? 2. Starting from the initial medium run values for ut-1 and , if the Fed lowers gm,t to 4%, find the value after one period (short run) for unemployment. Starting from the initial medium run values for ut-1 and , if the Fed lowers gm,t to 4%, find the value after one period (short run) for inflation.