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Monetary Contraction
A reduction in the total supply of money in circulation, often through central bank policies, aiming to control inflation and stabilize the economy.
Real Output
The total amount of goods and services produced, adjusted for inflation or deflation.
Loanable Funds
The money available for borrowing in the financial markets, determined by the levels of savings and demand for loans.
Rate of Inflation
The rate of inflation is the pace at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
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