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In the Dynamic Aggregate Demand and Aggregate Supply Model,what Is

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In the dynamic aggregate demand and aggregate supply model,what is the result of aggregate demand increasing faster than potential real GDP?


Definitions:

Profit Margins

A financial metric that measures the percentage of revenue that exceeds the costs of producing goods or services.

Open System

An open system is a system that continuously interacts with its environment, exchanging information, matter, and energy.

Theory X

A management concept that assumes employees are naturally unmotivated and dislike work, needing constant supervision and control.

Resource Inputs

The materials, labor, information, and other assets used to produce goods or services in a system or process.

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