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Potential output is the capacity to produce should all factors be employed in an economy. For example, it is the output should there be no unemployment, no spare labour and no spare capital. It is unlikely that actual output will be the same as potential ouput since there is always unemployment.
What else can I help you with?
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 is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
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!
If the equilibrium output is below potential output?
This is known as the recessionary gap
What happens when actual output exceeds potential output?
inflation rates tend to accelerate
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 are the theory of macroeconomics?
Macroeconomics is concerned about overall performance of the economy.Deals with the economic behaviour of aggregates national income, output, overall price and unemployment.
What is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
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!
What macroeconomics and microeconomics changes would you recommended to increase South Africa's export potential?
yes
What is output of pH?
pH is a potential, with no unit, it has no input and no output.
What macroeconomics and microeconomics policy changes would you recommend to increase South Africa's export potential?
yes
What do you refer to when actual output is higher than potential output?
expansionary output gap has occured.
If the equilibrium output is below potential output?
This is known as the recessionary gap
What happens when actual output exceeds potential output?
inflation rates tend to accelerate
What output can never be greater than?
potential
Explain fully the relationship between the definition of macroeconomics an output?
Macro Economics is not considering only the out put without having any input. Macroeconomics is that branch of Economics which study the overall economic system or entire economy or aggregate variables. Such as total or national income(for Afghanistan 13 bn $), total employment(15 mn), total or aggregate saving, aggregate supply and demand and general price(6%). •Macroeconomics deals with aggregates of variables or quantities(total) and not with individual quantities, deals with national income and not with individual income, deals with general price level and not with individual prices, deals with national output and not with individual output'.
