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Excess Capacity
A situation where a company or economy can produce more goods or services than currently demanded, leading to unused resources or capacity.
Productive Capacity
The maximum output that an economy can produce without causing inflation, determined by the availability of factors of production.
Classical Economics
A theory that emphasizes the importance of free markets, competition, and self-regulation in the economy.
Full Employment
An economic situation where all available labor resources are being used in the most efficient way possible, indicating low unemployment.
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