To simplify the polynomial expression \((xy - 2)(x^2 + 1)\), we can use the distributive property (also known as the FOIL method in the case of binomials). Here's how we do it step-by-step:
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Distribute \(xy\) to both terms in the second factor: \[ xy \cdot x^2 + xy \cdot 1 = xyx^2 + xy = x^3y + xy \]
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Distribute \(-2\) to both terms in the second factor: \[ -2 \cdot x^2 + -2 \cdot 1 = -2x^2 - 2 \]
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Now we combine all the terms from steps 1 and 2: \[ x^3y + xy - 2x^2 - 2 \]
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Rearranging the terms gives us: \[ x^3y - 2x^2 + xy - 2 \]
This is the simplified form of the polynomial expression. Therefore, the answer is: \[ x^3y + xy - 2x^2 - 2 \]