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Figure 16-5 -Refer to Figure 16-5.In the Dynamic Model of AD-AS in of AD-AS

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Figure 16-5 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 rising. E) there is pressure on wages and prices to rise.
-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


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Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Purchases

The act of buying goods or services.

Product X

A placeholder name used to refer to a generic or unspecified product in economic and marketing contexts.

Rational Consumer

The theoretical concept of a consumer who always makes decisions that provide the greatest benefit or utility according to their preferences.

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