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Potential Output
The maximum level of economic productivity that can be maintained in the long run without causing inflation to rise.
Governmental Intervention
Actions taken by a government to affect the economy, which can include regulations, subsidies, and taxes.
Discretionary Policy
Economic policies based on judgment decisions by policymakers, as opposed to rules-based policies, to manage the economy.
Policy Tools
Policy tools are mechanisms used by government or monetary authorities to influence the economy, such as interest rates, taxation, and government spending.
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