Refer to the Following Figure When Answering
Figure $( \tilde { Y } )$

Multiple Choice

Refer to the following figure when answering
Figure 12.10: Output Gap: 1990-2000
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.10, which shows the output gap $( \tilde { Y } )$ from 1990 to 2000, by quarter. If this is all the information you have, during the period 1993.1-1993.4, from the Phillips curve, you would conclude that:

A) inflation is decelerating, $\Delta \pi < 0$
B) inflation is accelerating, $\Delta \pi > 0$
C) unemployment is falling
D) unemployment is rising
E) Not enough information is given.