On the previous graph, use the purple line (diamond symbol) to draw SR.PC:, the short-run Phillips curve that is consistent with these expectations, assuming that it is parallel to SRPCi. Finally, using the orange point (square symbol labeled "C"), indicate on the previous graph the new, long-run equilibrium for this economy. The inflation rate at point C is [lower than; the same as; higher than] the inflation rate at point A, and the unemployment rate at point C is [lower than; the same as; higher than] the unemployment rate at point A. Was the Fed able to achieve its goal of lowering inflation? No, because the Fed cannot affect the inflation rate through monetary policy. L Yes, but only in the short run; in the long run, inflation returned to its natural rate. Yes, the Fed's policy successfully reduced inflation in both the short run and the long run. Now, suppose that the public fully anticipates the Fed's decision to decrease the money supply. Assume the public also believes that the Fed is firmly committed to carrying out this policy. According to rational expectations theory, when the economy is in long-run equilibrium, a fully anticipated decrease in the money supply will cause the economy to move [ from A to B and then to C from A to B and then back to A; directly from A to C; from A to B to C and then back to B; from A to B permanently] on the previous Phillips curve graph. In this case, rational expectations theory predicts that the fully anticipated decrease in the money supply will have the immediate effect of [a decrease; no change; an increase] in the inflation rate and [a decrease; no change; an increase] in the unemployment rate