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What is the definition of discipline?
Potential GDP
Potential GDP is the maximum possible output an economy can produce with full employment of its resources, without causing inflation.
Actual GDP
The total market value of all goods and services produced within a country in a specific period, measuring the economy's real output without adjustment for inflation.
Self-correcting Forces
Economic mechanisms that naturally work to restore equilibrium in markets without government intervention.
Potential GDP
The maximum output an economy can produce without triggering inflation, if it fully employs all available resources, including labor and capital.
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