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Inflation
The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
Multiple Counting
The erroneous practice of counting the same item more than once when calculating economic data, such as in measuring GDP.
Intermediate Goods
Goods used in the production process to create a final product, such as raw materials, components, or subassemblies, which are not counted in a country’s GDP to avoid double counting.
Final Goods
Products that are ready for consumption by individuals or businesses, without further transformation or being used in producing other goods.
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