In the diagram, SRPC represents an economy's short-run Phillips curve and LRPC represents its long-run Phillips curve. The economy begins at point W. An increase in monetary growth shifts the economy to point V. Why can the economy not remain at point V?
- Arate of inflation at point V: above the expected rate; unemployment rate at point V: above the natural rate
- Brate of inflation at point V: above the expected rate; unemployment rate at point V: below the natural rate
- Crate of inflation at point V: below the expected rate; unemployment rate at point V: above the natural rate
- Drate of inflation at point V: below the expected rate; unemployment rate at point V: below the natural rate