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Real Variables
Economic variables that are measured in physical units or have been adjusted for inflation, emphasizing their true value.
Quantity Theory
An economic theory which proposes that changes in the money supply will directly affect price levels in the economy over the long term.
Money Supply
The total amount of money available in an economy at a specific time, including cash, bank deposits, and other liquid assets.
Price Level
A summarial mean of present prices for goods and services in the broad economy.
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