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Governmental Intervention
Actions taken by a government to affect the economy, which can include regulations, subsidies, and taxes.
Discretionary Policy
Economic policies based on judgment decisions by policymakers, as opposed to rules-based policies, to manage the economy.
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.
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