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What happens when potential growth is greater than actual growth and what macroeconomic problems is that likely to lead?
Wiki User
∙ 12y ago
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.
Wiki User
∙ 12y ago
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What happens when demand is greater than demand?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
What happens when actual output exceeds potential output?
inflation rates tend to accelerate
What happens to prices when demand is greater than suply?
They rise. Supply & demand.
What happens when level of imports is greater than level of exports?
A trade deficit
What happens when the level of imports is greater than the level of export?
A trade deficit
What happens when pressure greater than atmospheric pressure is applied to pure water or a solution?
If a pressure greater than atmospheric pressure is applied to a solution or pure water, its water potential increases
What happens if there is a greater amount of white blood cells than red blood cells?
That is virtually impossible but if it did we would have problems with our bloodstream
As speed increases what happens to potential energy?
Potential energy is unrelated to speed.
When attractive force increases what happens to potential energy?
Potential energy will decrease.
What happens to potential energy when the speed is increased?
Potential energy is not affected by speed.
What happens to potential soak in water when we build malls and parking lots?
What happens to potential soak in water we build malls and parking lots ?
What happens to the potential of the molecules in a reaction?
the potential energy of the molecules changes during a reaction.
What happens when you unscramble the word 'tenpliato'?
it means potential (as in my case, Gravitational Potential energy)
What happens to the potential energy of the molecules in a?
The potential energy of the molecules change during a reaction.
What An Object falls towards the ground what Happens to the potential energy of the Object?
As an object falls from a higher level to a lower level, the gravitational potential energy that it had at the higher level changes to kinetic energy. As more and more potential energy changes to more and more kinetic energy, the increase of kinetic energy shows up in the form of greater speed.
What happens to the potential energy of the molecule in the reaction?
The potential energy of the molecules change during a reaction.
What happens to its potential energy as it passes to the lowest point?
potential energy changes to kinetic energy
