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Actual Price Level
The current average of all prices of goods and services in an economy, indicating the cost of living and the economic environment.
Potential Output
The maximum amount of goods and services an economy can produce when it is fully employing its resources.
Aggregate Demand
The total demand for all goods and services in an economy at various price levels, over a specific time period.
Expansionary Gap
A situation where the actual output in an economy is higher than the potential output, often leading to inflation.
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