show work please

Problem 2. (30 points) Consider the following Phillips Curve 8) b) C) d) it = E?! - 0.6(u - 0.05) Explain the above Philips Curve briey. Assume that E 71' = 0.02. Draw the graph of the Phillips curve. What is the slope of the curve? What are the long-run unemployment rate and the long-run ination rate? Is there any possibility that a government can decrease the ination rate without any change in the unemployment rate? If yes, how? Explain it. Is there any possibility that a government can increase the ination rate without any change in the unemployment rate? If yes, how? Explain it. Considering the Philips Curve as 71' = 0.02 0.6(u 0.05), and the government announces that it implements an expansionary monetary policy: 9 e1) Describe the Lucas Critique. 9 e2) Considering the Locus Critique, do you think that the above Philips curve is a good equation to study the relationship between ination and unemployment? Why? Explain it