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Difference between actual output and potential output of an economy?
Wiki User
∙ 14y ago
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!
Wiki User
∙ 14y ago
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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
What is potential output in macroeconomics?
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.
Define potential GDP under what circumstances does actual real GDP fall short of potential GDP equal potential GDPand exceed potential GDP?
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.
What happens when potential growth is greater than actual growth and what macroeconomic problems is that likely to lead?
Potential growth refers to the maximum capacity an economy can grow at, it is always greater than actual growth because an economy cannot realistically function at full capacity. By full capacity i mean full employment, using all resources the most efficient way. Technically there shouldn't be any macroeconomic problems resulting from that because actual growth is always below potential growth, but if it gets further away then it could eventually lead to a recession.
What is the difference between actual price and minimum acceptable price?
producer surpluss
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..............
What is price erosion?
difference between actual cost and potential price
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
What is the difference between potential and actual conflict?
Potential conflict is before a conflict it is in motion, but actual conflict is toe to toe combat, i.e war.
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.
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 are the difference between the potential use of media and their actual use?
Media can be used in many different ways, some of which have not been discovered yet. The actual use is how they are being used today.
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?
The difference between actual quantity and standard quantity is called the material quantity variance.
What is the difference between the jack used in actual prices and in the lab?
There is no difference between the jack used in the actual sense and in the lab.
What the difference between actual value and earned value?
The difference between the Actual Value & Earned Value is the Project Cost Variance
What does an auditor do if there is a material difference between an expected and actual balance?
However, if there is a material difference between the expected and actual balance, the auditor will investigate this difference further. At this point the auditor will develop an explanation for the difference.
What is the difference between potential resources and actual resources?
A type of natural resource that exists in a region and may be used in the future (in contrast to actual resource).A type of natural resource that has been surveyed for quality and quantity and used in present time (in contrast to potential resource).
