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Define potential GDP under what circumstances does actual real GDP fall short of potential GDP equal potential GDPand exceed potential GDP?
Wiki User
∙ 14y ago
Potential GDP is basically the sum of growth in productivity, growth in labor force, and growth in number of hours worked. In a mature economy like the US, change in number of hours worked is insignificant and often ignored.
-Potential GDP is the level of real GDP that the economy would produce if it were at full employment. When real GDP falls short of potential GDP the economy is not at full employment. When the economy is at full employment real GDP equals potential GDP. Real GDP can exceed potential GDP only temporarily as it approaches and then recedes from a business cycle peak.
Wiki User
∙ 14y ago
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Difference between actual output and potential output of an economy?
Actual output is the "real" GDP ( gross domestic product). potential output is the targeted output set by the government. the difference between the actual and potential output is UNDEREMPLOYMENT!
Distinguish between actual and potential growth?
• Potential growth is the change in the ability of the economy to produce goods and services.•Actual growth is a rise in the quantity of goods and services produced
If actual output exceeds potential output eventually what will happen?
According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.
What happens when actual output exceeds potential output?
inflation rates tend to accelerate
Differences between actual and potential resources?
resources which are not fully tapped are known as potential resources.they need detailed survey for there use. actual resources are fully taped and their quantities are confirmed .there optimum utilization depends upon the development of the technology
What is the different between actual buyers and potential buyers?
actual buyer is that which is actual buyer and potential buyer is that which is potential buyer..............
What is difference between the actual buyers and potential buyers?
actual buyer is that which is actual buyer and potential buyer is that which is potential buyer..............
How do you define a fictional universe?
A fictional universe is an interconnected environment in a work of fiction in which the circumstances, people, and other components are different from those encountered in actual ordinary human experience.
Is water an actual renewable resource or potential renewable resource?
Actual.
What is the antonym for potential?
actual, existent
Difference between actual output and potential output of an economy?
Actual output is the "real" GDP ( gross domestic product). potential output is the targeted output set by the government. the difference between the actual and potential output is UNDEREMPLOYMENT!
Is thorium actual or potential resource?
Thorium is an important potential resource for the future.
Medicare define maximum allowable actual charge?
115%
What is the difference between potential and actual conflict?
Potential conflict refers to a situation where there is a possibility of conflict arising but it has not yet escalated. Actual conflict, on the other hand, is a situation where there is clear evidence of disagreement or tension between parties.
Why is it important to consider genetic potential of the animal in doing actual animal production?
why it is important to consider genetic potential of the animal in doing actual animal productio
What is difference between actual and potential buyers?
An actual buyer is someone who is committed to buying a product whereas a potential buyer is some who is interested in buying, but may not.
Distinguish between actual and potential growth?
• Potential growth is the change in the ability of the economy to produce goods and services.•Actual growth is a rise in the quantity of goods and services produced
