Figure 15-11 LRAS, LRAS, Price level SRAS SRAS, B 102 100 AD2 AD, 0 $10 10.8 11 Real GDP Refer to Figure 15-11. 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 the Federal Reserve pursues no policy, then at point B O the economy is below full employment. the unemployment rate is very, very low. there is pressure on wages and prices to rise. O firms are operating above their normal capacity