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Monetary Policy
The process by which a central bank controls the supply of money in an economy, typically targeting inflation, employment, and economic growth.
Potential Level
The potential level of output, or potential GDP, is the maximum amount of goods and services an economy can produce when it is fully utilizing its resources, without causing inflation to rise.
Fixed-growth-rate Monetary Policy
A monetary policy framework aiming to maintain a predetermined rate of growth in the money supply.
Active Fiscal Policy
Government policy that involves altering government spending and taxation to influence the economy.
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