Set up a correctly labeled Phillips Curve graph to begin each scenario. Then, show and explain what happens to the Phillips curves in each scenario. Assume the natural rate of unemployment is 5%. When showing a movement along the curve, label the initial point, A, and the new point, B. Use standard notation when shifting the curve.

Inflation expectations fall from 5% to 2%.

The government increases income taxes.

Tornados strike the Midwest, handicapping manufacturing ability.

The government increases the time that a worker may remain on unemployment compensation.