Multiple Choice
Figure 16-5 
-Refer to Figure 16-5.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,and no fiscal or monetary policy is pursued,then at point B
A) the unemployment rate is very low.
B) firms are operating below capacity.
C) the economy is above full employment.
D) income and profits are definitely rising.
E) there is pressure on wages and prices to rise.
Correct Answer:
Verified
Correct Answer:
Verified
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