Refer to the Following Figure When Answering the Following Questions $\Delta$

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 12.10: Output Gap: 1990-2000
-Consider Figure 12.10, which shows the output gap from 1990 to 2000, by quarter. If this is all the information you have, during the period 1997.1-1999.4, from the Phillips curve, you would conclude that:

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