6. Suppose the natural rate of unemployment is 6 per cent. On one graph, draw two Phillips curves that can be used to describe the four situations listed here. Label the point that shows the position of the economy in each case.

a. Actual inflation is 5 per cent and expected inflation is 3 per cent.

b. Actual inflation is 3 per cent and expected inflation is 5 per cent.

c. Actual inflation is 5 per cent and expected inflation is 5 per cent.

d. Actual inflation is 3 per cent and expected inflation is 3 per cent.