Differentiate between actual and potential output, Macroeconomics

Assignment Help:

Differentiate between Actual and Potential output. 

Actual output is that level which economy in fact produces. In contrast, potential output is the aggregate capacity output of a nation; the maximum amount of goods and services that can be produced with available resources and a given state of technology. 

 


Related Discussions:- Differentiate between actual and potential output

Liberalisation of capital account and convertibility issue, Liberalisation ...

Liberalisation of Capital Account and Convertibility Issue: Broadly speaking and irrespective of sector specificity, a liberalised system is one where the role of the governme

Quality of health care, Explain how changes in the quality of health care w...

Explain how changes in the quality of health care will influence the demand for care.

To compare prices what is consumers ability, How has the Internet revolutio...

How has the Internet revolution affected the workings of businesses, consumers, and government in a free market economy? Specifically, how has Internet affected businesses' ability

State the price level and time, State the Price level and time We are r...

State the Price level and time We are rarely interested in the value of price level at a specific point in time. What we are interested in is percentage change in the price lev

Desired aggregate spending, Desired Aggregate Spending Desired aggregat...

Desired Aggregate Spending Desired aggregate spending refers to the volume of purchases of the currently produced goods and services that all spending units in the economy wish

Real wage, what wil hapen to the real wage if the nominal wages and prices ...

what wil hapen to the real wage if the nominal wages and prices rise at the same rate per year?

Aggregeta demand and aggregate supply, Using an aggregate demand and supply...

Using an aggregate demand and supply diagram, explain how each of the following scenarios affects the equilibrium price level and aggregate output a/Consumers expect a recession b/

Short-run framework, What is the difference between the short-run framework...

What is the difference between the short-run framework and the long-run framework? Discuss how each relates to supply and demand.

Explain quantity supplied and supply, What is the difference between 'quant...

What is the difference between 'quantity supplied' and 'supply'?  There is a distinction among supply and quantity supplied. Supply explains the behavior of sellers at every pr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd