Examlex
One of the long-lasting results of World War I was the increasingly sour and suspicious relationship that developed between:
Aggregate Demand Curve
A graphical representation showing the relationship between the overall price level in an economy and the total demand for goods and services.
Potential Output
The maximum amount of goods and services an economy can produce when it is most efficiently utilizing its resources.
Expansionary Gap
A situation in an economy where actual gross domestic product exceeds the potential GDP, leading to inflationary pressures.
Natural Rate
The level of economic output at which the rate of inflation is stable, often related to the concept of the natural rate of unemployment where the labor market is in equilibrium.
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