Figure 16-4 -Refer to Figure 16-4. at Point M, How Do Actual

Multiple Choice

Figure 16-4
-Refer to Figure 16-4. At point m, how do actual and expected inflation rates and unemployment rates compare?

A) The actual inflation rate exceeds the expected inflation rate and the actual unemployment rate exceeds the natural rate of unemployment.
B) The actual inflation rate exceeds the expected inflation rate and the actual unemployment rate is less than the natural rate of unemployment.
C) The actual inflation rate is less than the expected inflation rate and the actual unemployment rate exceeds the natural rate of unemployment.
D) The actual inflation rate is less than the expected inflation rate and the actual unemployment rate is less than the natural rate of unemployment.