Economy's potential output is unaffected by pure inflation.

Name: Economy's potential output is unaffected by pure inflation.
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Pure inflation refers to a general rise in the price level of goods and services in an economy over a period of time without a corresponding increase in the production of goods and services. Therefore, it does not affect the economy's potential output, which is determined by factors such as labor, capital, technology, and natural resources.

Economy's Potential Output Is Unaffected by Pure Inflation