-Refer to Figure 24 -1

-Refer to Figure 24 -1. Suppose that the economy is currently at point A on the short -run Phillips curve in the figure above, and the unemployment rate at A is the natural rate. If the economy was to move to point C, which of the following must be true?

A) Equilibrium GDP must be above potential GDP.
B) The central bank sold treasury bills to cause the move.
C) The central bank conducted contractionary policy to cause the move.
D) Aggregate demand must have decreased.
E) The economy is producing a level of GDP equal to potential GDP.