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  KEY TERMS
 

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Real economy
The material facet of an economy which deals with the goods, services and resources.

Recession
When there is a decline in the economic activities of an economy or there is a contraction in the business cycle, it can be said that the economy, industry or a firm is in recession.

Regressive tax
A system of taxation where one pays lesser amount of tax as he graduates on his income level.

Risk averse
Behavior relating to investments, where an investor would prefer to invest in an option with relatively lower risk over others.




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