Please answer the following questions starting from part (d) to part (e)

I. Suppose that the Phillips curve is given by 11} = 1113+ 0.1 Zut a. What is the natural rate of unemployment? Assume Hf = Gut , and suppose that 6 is initially equal to 0. Suppose that the rate of unemployment is initially equal to the natural rate. In year t, the authorities decide to bring the unemployment rate down to 3% and hold it there forever. b. Determine the rate of ination in years t, t + 1, t + 2, and t + 5. 0. Do you believe the answer given in (b)? Why or why not? (Hint: Think about how people are likely to form expectations of ination.) Now suppose that in year t + 5, 6 increases from 0 to 1. Suppose that the government is still determined to keep u at 3% forever. (1. Why might 6 increase in this way? e. What will the ination rate be in years t + 5, t + 6, and t + 7? f. Do you believe the answer given in (e)? Why or why not