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GOVERNMENT SECURITY: A financial instrument used by the federal government to borrow money. Government securities are issued by the U.S. Treasury to cover the federal government's budget deficit. Much like consumers who borrow money from banks to finance the purchase of a house or car, the federal government borrows money to finance some of its expenditures. These securities include small denomination ($25, $50, or $100), nonnegotiable Series EE savings bonds purchased by consumers. The really serious money, however, is borrowed using larger denomination securities ($100,000 or more) purchased by banks, corporations, foreign governments, and others with large sums of money to lend.

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Lesson 14: Aggregate Supply | Unit 4: Determinants Page: 16 of 20

Topic: Short Run Supply <=PAGE BACK | PAGE NEXT=>

The short-run aggregate supply (SRAS) curve is related to the price level, and this relation depends on production cost.
  • An increase in production cost decreases aggregate supply and shifts the SRAS leftward.
  • A decrease in production cost increases aggregate supply and shifts the SRAS rightward.
Key production cost changes:
  • Wages: Wages shift the SRAS from adjustments in workers perceptions of the current price level and expectations about future prices.
  • Material Cost: Key economy-wide resources, like oil, can cause the SRAS to shift through big changes in price.

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EXPORTS LINE

A graphical depiction of the relation between exports sold to the foreign sector and the economy's aggregate level of income or production. This relation is most important for deriving the net exports line, which plays a minor, but growing role in the study of Keynesian economics. An exports line is horizontal which indicates that exports are totally autonomous, with no induced component. The aggregate expenditures line used in Keynesian economics is derived by adding or stacking the net exports line, derived as the difference between the exports line and imports line, onto the consumption line, after adding investment expenditures and government purchases.

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APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time lost in your local discount super center seeking to buy either a large, stuffed giraffe or a birthday greeting card for your aunt. Be on the lookout for crowded shopping malls.
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This isn't me! What am I?

Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
"God grants victory to perseverance. "

-- Simon Bolivar, South American liberator

BOP
Balance of Payments
A PEDestrian's Guide
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