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Briefly explain the meaning and importance of the following concepts: INCLUDE GRAPHS! a) The term structure of interest rates (3 marks) b) Potential output (3

Briefly explain the meaning and importance of the following concepts: INCLUDE GRAPHS!

a) The term structure of interest rates (3 marks)

b) Potential output (3 marks)

c) The real interest rate (3 marks)

d) The unemployment gap

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