Question: Just as there is a difference between nominal and real GDP, what is the difference between the nominal rate of interest and real rate of

Just as there is a difference between nominal and real GDP, what is the difference between the nominal rate of interest and real rate of interest? Which one accounts for any decline in purchasing power as a result of inflation and how does that apply to the difference between nominal wages and the real wage rate? Is the gap between real GDP and potential GDP wider or narrower during a recession

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