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Exhibit 11-4 -The Graph in Exhibit 11-4, When Aggregate Supply Is AS

question 22

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Exhibit 11-4 Exhibit 11-4   -The graph in Exhibit 11-4, when aggregate supply is AS, the equilibrium output and price level will be Y<sub>2</sub> and P<sub>2</sub>.
-The graph in Exhibit 11-4, when aggregate supply is AS, the equilibrium output and price level will be Y2 and P2.


Definitions:

Government Spending

Expenditures made by the government for its operations, provision of public services, or interventions in the economy.

U.S. Government Securities

Fixed-income investments backed by the full faith and credit of the United States government, including Treasury bills, notes, and bonds.

Money Supply

The total amount of monetary assets available in an economy at any specific time.

Interest Rate

The expense, quantified as a percentage of the principal, charged by a lender to a borrower for the use of resources.

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