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The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when:
Figure 16.1
Observable Symptoms
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Baseline
An initial set of measurements or observations used for comparison with subsequent data.
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Object Relations Theorists
Psychologists who study how people form representations of others and relationships based on early caregiving experiences.
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