The equation y = ab^x represents an exponential function where 'a' is the initial value, 'b' is the base or growth factor, and 'x' is the exponent. This function describes rapid growth or decay, depending on whether 'b' is greater than or less than 1. The characteristics of exponential functions play a critical role in understanding their equations and how they behave in various scenarios, especially in terms of their rates of change and transformations.
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