Examlex
An important feature of the food group subgroupings is that
Contractionary Gaps
Contractionary gaps occur when an economy’s actual output is lower than its potential output, often leading to unemployment and underutilized resources.
Aggregate Demand
The total demand for all goods and services within an economy at various price levels, in a given time period.
Expansionary Gap
A situation where the actual economic output exceeds the potential output, often leading to inflation.
Short-Run Aggregate Supply
This is the total supply of goods and services that firms in an economy plan on selling during a short time period, taking into account current prices.
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