Consider the following graphs for the US which relate the unemployment rate to CPI inflation, Figures 1 and 2 are taken from Can the Phillips

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Consider the following graphs for the US which relate the unemployment rateto CPI inflation,Figures 1 and 2 are taken from “Can the Phillips Curve Helf Forecast Infla-tion?” by Kevin Lansing (FRBSF Economic Letter, 2002) and figure 3 is taken from”Prospects for Inflation in a High Pressure Economy: Is the Phillips Curve Dead orIs It Just Hibernating?” by Peter Hooper, Frederic Mishkin, and Amir Sufi (NBERWorking Paper, 25792, 2019).Briefly interpret these graphs. Offer some possible explanations why the slope ofthe regression line in figure 1 is steeper than the slope of the regression line in figure2 and why the Phillips curve coefficient in figure 3 has fallen (in absolute terms)since its low in 1995. What does the Australian experience look like and how does itcompare to the US experience? (10 points)Firme 1Figure 11-11and the following graph, also for the US, which provides estimates of the Phillipscurve coefficient:Figure 3 Core PCE Phillips curve coefficient from bi-poor roling regendamn4 4

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