(Solved): The following graph plots the short-run and long-run Phillips curves (SRPC and LRPC, respectively) ...

The following graph plots the short-run and long-run Phillips curves (SRPC and LRPC, respectively) for an economy currently experiencing long-run macroeconomic equilibrium at polnt $A$, where the natural unemployment rate is $6\%$ and the inflation rate is $8\%$ per year. Suppose that the central bank for this economy has decided that inflation is too high and thus wants to decrease the inflation rate by 6 percentage points per year. A reduction in the rate of Infiation is known as would have to accept an unemployment rate of True or False: If people have rational expectations, the cconomy may not have to endure an unemployment rate as high as predicted by the short-run Phillips curve. True