Exhibit 17-2 
-According to those who favor a passive approach to policy, how will the economy shown in Exhibit 17-2 attain equilibrium at potential output?
Definitions:
Stockholders' Equity
The ownership stake of shareholders in a corporation, which is the value left over from the assets after liabilities have been taken out.
Treasury Stock
Shares that were issued and later reacquired by the company, reducing the amount of outstanding stock.
Par Common Stock
The nominal value assigned to share of common stock, as specified in the corporate charter, which represents the minimum price shares can be issued.
Cost Method
An accounting method used to value investments, where the investment is recorded at its acquisition cost without recognizing any changes in market value.
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