Problem 2. Use the IS-MP-PC framework to answer the following questions. Assume that the economy starts in period 0 in the no-shock long-run equilibrium, in which a = 0, Ro = T = 3%, 0 = 0, Yo - 0, and 70 - 4%. Assume also that the sensitivity coefficient in the Phillips curve is v - 1, and the sensitivity coefficient in the IS curve is b - 2. Be sure to draw the relevant IS-MP diagrams for each of your answers in parts 2 4. 1. Write down the equations for the IS curve and the Phillips curve in their general form and in period 0 (in the absence of shocks). 2. Suppose that in period 1 there is a positive inflation shock 6 - 2 (which goes away in period 2). Assume that the central bank's goal is to keep the rate of inflation constant. Illustrate the consequences of this shock. Calculate the real interest rate and short-run output in period 1. Sketch the path of real output over time