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EUROPEAN UNION: The economical and political integration of a dozen European nations created by the Maastricht Treaty signed in 1992. The twelve nations forming the European Union (commonly abbreviated EU) are Belgium, Denmark, Greece, Germany, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Great Britain. Three additional nations that have joined the original dozen are Austria, Finland and Sweden. The Economic Union was actually one of several steps by European nations after the end of World War II to promote integration. This Economic Union was established to reduce or eliminate many tariffs and nontariff barriers, create a single monetary unit (the euro), establish of a common military and defense policy, and centralize monetary policy.

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Lesson 13: Aggregate Demand | Unit 5: Policies Plus Page: 22 of 22

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  • How shifts in the aggregate demand curve are a source of macroeconomic (business cycle) instability.
  • The two basic types of macroeconomic problems associated with business cycles, recessions (with unemployment) and booming expansions (with inflation).
  • Controlling aggregate demand instability through demand-management policies, including fiscal and monetary policies.
  • Fiscal policy that affects aggregate spending directly through government purchases and indirectly through taxes.
  • Monetary policy that affects aggregate spending indirectly interest rates.

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SEIGNIORAGE

The difference between the face value, or value in exchange, of money and the cost of producing the money. This seigniorage is effectively the profit government generates from producing currency--printing paper bills or minting metal coins. That is, government effectively "makes money" by making money.

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BEIGE MUNDORTLE
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Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway looking to buy either a square lamp shade with frills along the bottom or an electric coffee pot with automatic shutoff. Be on the lookout for the last item on a shelf.
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The New York Stock Exchange was established by a group of investors in New York City in 1817 under a buttonwood tree at the end of a little road named Wall Street.
"Most of the things worth doing in the world had been declared impossible before they were done."

-- Louis D. Brandeis, Supreme Court Justice

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Pacific Stock Exchange (US, LA and San Francisco)
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