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In computer simulation, the computer is programmed
Potential Output
The maximum sustainable level of real GDP over the long term that does not lead to an increase in inflation.
Price Level
This term refers to the average of current prices across the entire spectrum of goods and services produced in the economy.
Aggregate Demand Curve
A curve that represents the total quantity of all goods and services demanded by the economy at different price levels.
Equilibrium Output
The level of output where the aggregate supply is equal to the aggregate demand in an economy.
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