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ECONOMIC GROWTH, PRODUCTION POSSIBILITIES: Economic growth is the process of increasing the economy's ability to produce goods and services. It is achieved by increasing the quantity or quality of resources. This process can be illustrated as an outward shift of the production possibilities curve.

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MONEY SUPPLY, AGGREGATE DEMAND DETERMINANT

One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in the money supply causes an increase (rightward shift) of the aggregate curve. A decrease in the money supply causes a decrease (leftward shift) of the aggregate curve. Other notable aggregate demand determinants include interest rates, inflationary expectations, and the federal deficit.

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Today, you are likely to spend a great deal of time flipping through mail order catalogs hoping 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 jovial bank tellers.
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
"As is our confidence, so is our capacity. "

-- William Hazlitt, essayist

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