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What does the term Potential GDP mean?
Interest Rate
The component of a loan levied as interest to the borrower, usually characterized as an annual percentage of the outstanding loan value.
Aggregate Demand
Total economic interest in goods and services, assessed at a uniform price level throughout a specific period.
Aggregate Supply
The total supply of goods and services produced within an economy at a given overall price level and in a given time period.
Interest Rate Effect
The impact that changes in interest rates have on consumer spending due to the cost of borrowing; generally, as interest rates rise, consumer spending decreases.
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