Figure 18-5 -Refer to Figure 18-5.In the Dynamic Model of AD-AS in Model

Figure 18-5

-Refer to Figure 18-5.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.