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Potential Output
The highest level of economic output an economy can sustain over the long term without increasing inflation, determined by available resources and technology.
Aggregate Demand
The sum total of desires for products and services within an economic entity, marked at a specific price level through a chosen timeframe.
Expansionary Gap
Occurs when an economy's actual output is higher than the potential output, often leading to higher inflation.
Active Approach
A management strategy where decisions are made using discretionary methods to try to outperform the market or a specific benchmark.
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