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Millie is stumped by a problem in her pre-calculus text. She furtively glances at the answer provided in the back of the text to get an idea of how the solution should look before she returns to the problem. Millie's strategy most closely resembles the problem solving heuristic of _________.
Actual GDP
The total market value of all goods and services produced within a country in a specific period, measuring the economy's real output without adjustment for inflation.
Self-correcting Forces
Economic mechanisms that naturally work to restore equilibrium in markets without government intervention.
Potential GDP
The maximum output an economy can produce without triggering inflation, if it fully employs all available resources, including labor and capital.
Expansionary Gap
A situation where the actual level of output in an economy exceeds its potential output, often leading to inflation.
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