Differentiate Clearly Between Short-Term and Long-Term Memory

question 78

Essay

Differentiate clearly between short-term and long-term memory.

---

Definitions:

Potential Level

The maximum output an economy can produce without leading to inflation, when resources such as labor and capital are fully utilized.

Classical Economists

Economists from the 18th and 19th centuries who focused on the ideas of free markets, the law of supply and demand, and the role of competition in regulating economic activity.

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Saving

The portion of income not spent on consumption or taxes, typically put aside for future use or investment.