Figure 17.1 Aefer ro Figure 17.1. Suppose that the economy is currently at point A on the short-run Phillips curve in the figure above, and the unemployment rate at A is the natural nte. If the economy was to move to point C, which of the following must be true? The economy is producing a level of GDP equal to potential GDP. Aggregate demand must have decreased Equilibrium GDP at point C must be above potential GDP. The fed conducted contractionary policy to cause the move