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In the middle of a difficult exam, Robert tells his teacher that his stomach hurts, and the teacher immediately sends him to the school nurse. On several later occasions when he has a difficult test or assignment, Robert again tells his teacher that he doesn't feel well. Robert's frequent trips to the nurse have:
Long-run Changes
Transformations or trends that occur over a significant period, affecting economic structures, demographic patterns, and technological advancements.
Potential GDP
An estimate of the maximum level of economic activity an economy can sustain over a period without leading to inflation.
High Unemployment
High unemployment refers to a condition where a significant portion of the workforce is without jobs, leading to economic and social challenges.
Credible Policy
A policy considered by participants in the economy to be likely implemented and maintained over time, thereby influencing their economic decisions.
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