(Solved): The following graph plots the short-run Phillips curve for a hypothetical economy. The given point ...

The following graph plots the short-run Phillips curve for a hypothetical economy. The given point on the graph indicates the initial rates of unemployment and inflotion. Assume that the economy is currently in long-run equilibrium. Suppose the central bank of the hypothetical economy dedides to increase the money supply. On the following groph, shit the curve or drag the blue point along the curve, or do both, to show the short-run effects of this policy. Hint: You may assume that the central bank's move was unanticipated. In the short run, an unexpected increase in the money supply results in unemployment rate. in the short run, an unexpected increase in the money supply results in unemployment rate. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the increase in the mon supply. In the long tun, the increase in the money supply results in (relative to the economy's initim equilibrlum). in the inflation rate and in the unemployment rate