1. Can total expenditures ever be greater than the money supply? Explain your answer. 2. Take a look

1. Can total expenditures ever be greater than the money supply? Explain your answer. 2. Take a look at Exhibit 6(a). If the economy starts at point 1 and then moves to point 2 as a result of an increase in aggregate demand, then how and why does the economy move from point 2 to point 3?