Question: Set up a correctly labeled Phillips Curve graph to begin each scenario. Then, show and explain below what happens to the short-run Phillips curve. Assume

Set up a correctly labeled Phillips Curve graph to begin each scenario.

Then, show and explain below what happens to the short-run Phillips curve. 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.

The price of crude oil andmost sources of energy decreases. Governmentspendingincreases. Inflation expectations rise from 3%to6%. The Fed increases interest rateswith contractionary monetary policy.

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