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Compare and contrast the key approaches to IPE. Which key issues do the approaches agree, on which do they disagree? Which approach do you believe best describes the real world? Why?
Real GDP
Real Gross Domestic Product, which is the inflation-adjusted measure of the total value of all goods and services produced within a certain time frame.
Price Level
A gauge for the mean cost of products and services across an economy at a given time.
Short-Run Aggregate Supply
Represents the total supply of goods and services that firms in an economy plan on selling during a short time period, based on the current price level.
Aggregate Demand
The total demand for goods and services within a particular market or economy at a given price level and period.
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