Internal balance describes

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Internal balance refers to the achievement of a low unemployment rate through domestic rate of growth. It is often measured by the output gap, which is the difference between actual output and potential output. A positive output gap indicates that the economy is producing more than its potential, which can lead to inflation and overheating, while a negative output gap indicates that the economy is operating below its potential, which can lead to high unemployment and underutilization of resources. Maintaining internal balance is one of the objectives of macroeconomic policy.

Internal Balance Describes