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Identify/define and explain the significance of the following: Parlement of Paris.
Capitalism
An economic system characterized by private or corporate ownership of capital assets and goods, with the production and pricing of goods determined primarily by competition in a free market.
Government Intervention
This involves actions taken by a government to affect the economy beyond the basic regulation of fraud and enforcement of contracts, which can include tariffs, subsidies, and adjustments to interest rates.
Wages and Prices
The relationship between the payment workers receive for their labor and the cost of goods or services in the economy.
Rational Expectations Theory
The hypothesis that individuals form forecasts about the future based on all available information and past experiences, affecting their economic decisions.
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