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Saving and Investment
The act of setting aside income for future use and allocating it to instruments expected to generate returns over time
Nominal-Wage Rigidity
The situation where nominal wages are slow to adjust to changing economic conditions, affecting employment and economic dynamics.
Classical Self-Correction Mechanism
A theory suggesting that free markets are capable of automatically adjusting to and correcting economic imbalances.
Recessions
A temporary downturn in the economy marked by decreased trade and industrial activities, typically recognized by a decline in Gross Domestic Product (GDP) for two consecutive quarters.
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