(Solved): Question 4 [30 points] Consider the accelerationist Phillips Curve. z is 2%, is 1 , and the unem ...

Question 4 [30 points] Consider the accelerationist Phillips Curve. $$\mathrm{z}$$ is $$2\%,?$$ is 1 , and the unemployment rate is $$5\%$$. a) Explain what happens to the Phillips curve if $$m$$, the market power of producers, increases from $$1\%$$ to $$2\%$$. You can describe the change either using a graph, or in words [10 points] b) Explain what happens to the natural rate of unemployment if $$m$$, the market power of producers, increases from $$1\%$$ to $$2\%$$. [10 points] c) Explain what happens to the natural rate of interest of the economy if $$m$$, the market power of producers, increases from $$1\%$$ to $$2\%$$. [10 points]