16)Refer to Figure 16-5.In the dynamic model ofAD-ASin the figure above, if the economy is at pointAin year 1 and is expected to go to pointBin year 2, and no fiscal or monetary policy is pursued, then at pointB

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.