Use Exhibit 6 to answer question

If people in the economy expect inflation to be 3 percent and inflation is 3 percent, the economy is operating at point

a. C.

b. E.

c. D.

d. A.

e. F.

f. I.

g. B.

h. H.

i. G.

Long-run Phillips Curve Exhibit Rate Inflation A 9% - - - D VB 6% - - - - - GE\\ C Short-run Phillips Curve for 3% VH F expected inflation of 9% Short-run Phillips Curve for expected inflation of 6% Short-run Phillips Curve for expected inflation of 3% Natural Rate of Unemployment Unemployment Rate