FOMC participants saw the data on aggregate expenditure and unemployment as little changed since June but expected the unemployment rate to fall. Participants expected that inflation would remain below 2 percent per year in the near term but stabilize around the 2 percent objective over the medium term. 

Are FOMC participants predicting that the U.S. economy will move along a short-run Phillips curve or that the short-run Phillips curve will shift through 2017 and 2018? Explain.