Assume the natural rate of unemployment is 6%. On the same coordinate system, draw two Phillips lines that can be used to describe the four situations below. Name the points that indicate where the economy is in each case. a) Actual inflation is 5% and expected inflation is 3%.

b) Actual inflation is 3% and expected inflation is 5%.

c) Actual inflation is 5% and expected inflation is 5%.

d) Actual inflation is 3% and expected inflation is 3%