Refer to the Following Figure When Answering
Figure $\tilde { Y } _ { t , 1 }$

Multiple Choice

Refer to the following figure when answering
Figure 9.3: Phillips Curve
-Consider the Phillips curve at $\tilde { Y } _ { t , 1 }$ in Figure 9.3.Which of the following is true?

A) The economy is booming.
B) The economy is deflationary.
C) The economy is at potential output.
D) The economy is in recession.
E) Unemployment is above the natural level.