So let’s say that this European Central Bank, the European Central Bank expects the natural unemployment rate to be 6 percent, and the actual unemployment rate is 5.5 percent. A.) Use the Phillips curve illustration to determine what happens to inflation and unemployment over a long period of time.

So let’s say that this European Central Bank, the European Central
Bank expects the natural unemployment rate to be 6 percent, and the
actual unemployment rate is 5.5 percent.

A.) Use the Phillips curve illustration to determine what happens to
inflation and unemployment over a long period of time.