The graph below represents an economy's Monetary Rules (MR) and Phillips Curves (PC). PC(75 = 4) PC(75 = 3) 4 3.5 PC(70 = 2) Inflation B 3 bias A' TT = 2 MR MR' ye yz y1 YH Select all the CORRECT statements. Considering adaptive expectations, after the central bank changes preferences that shift the MR to MR', this economy will move from A to A'. Under rational expectations, when the new policy that shifts MR to MR' is announced, the economy jumps directly from point A to point Z in the graph. Under adaptive expectations, this central bank will not be able to achieve the point A' (at which yt = yH) in the short run. At MR', this central bank's inflation target is above 2 (i.e., IT > 2)