Examlex
Which of the following components is present in a cephalin?
Policy Tools
Policy tools are mechanisms used by government or monetary authorities to influence the economy, such as interest rates, taxation, and government spending.
Economy's Potential
The economy's potential refers to its maximum productive capacity when resources are fully employed, indicating a state where unemployment is at the natural rate and there is no demand-pull inflation.
Fiscal Policy
Policy made by the government which entails modifying how much it spends and adjusts tax rates to control and affect the economic health of a nation.
Rational Expectations School
An economic theory suggesting individuals make predictions about future economic events using all available information and past experiences.
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