Figure 17-7
-Refer to Figure 17-7.In the dynamic AD-AS model,if the economy is at point A in year 1 and is expected to go to point B in year 2,and the Federal Reserve pursues no policy,then at point B

Question

Figure 17-7 
-Refer to Figure 17-7.In the dynamic AD-AS model,if the economy is at point A in year 1 and is expected to go to point B in year 2,and the Federal Reserve pursues no policy,then at point B

Quizplus · Accepted Answer

At point B, the economy is operating above its potential output, which means that firms are producing above capacity.

Figure 17-7 -Refer to Figure 17-7.In the Dynamic AD-AS Model,if the Economy