Use the Modern Expectational Phillips Curve Diagram Below to Answer

Multiple Choice

Use the Modern Expectational Phillips curve diagram below to answer the following question(s) .
Figure 15-4

-Refer to Figure 15-4.According to the modern expectational Phillips curve,unemployment will temporarily be above the natural rate of unemployment when

A) any inflation is present.
B) people expected inflation to be higher than what actually occurred.
C) people expected inflation to be lower than what actually occurred.
D) people correctly anticipated the inflation rate.