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The figure below shows the effect of a 2011 increase in government purchases on the hypothetical path of real GDP compared to the path of potential GDP (the baseline) between 2011 and 2016. Potential
GDP (A) Using the cirve and line anglysis, expleng what is accurting between 2011 ant
(B) Using the curve and line analysis, exglain what is accurring between 2012 ant 2014 .
(C) Using the curve and line malysis, exglanin what is accuring between 2014 and 2016
Collateral
Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower defaults.
Secured Party
An individual or entity holding an interest in a secured transaction as security for performance obligation, typically involving collateral.
Attachment
A legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor.
Security Interest
A legal claim or lien on collateral, ensuring an entity or individual (the secured party) to collect on a debt or obligation.
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