Explain the difference between actual and potential growth, Microeconomics

Assignment Help:

Use a PPF to explain the difference between actual and potential growth.

The PPF shows possible output, taking into consideration all factors of production - but de facto output is determine by a point on or within the PPF.

Actual growth means that the point moves outwards, whereas potential growth is shown by an outward shift in the PPF.

 


Related Discussions:- Explain the difference between actual and potential growth

The appropriate resource constraint, Consider a person''s decision problem ...

Consider a person''s decision problem in trying to decide how many children to have. Although she cares about children and would like to have as many as possible, she knows that ch

Consumer behaviour, discuss how economic theory of marginal utility explain...

discuss how economic theory of marginal utility explains the optimum pattern of consumption for an individual consumer

Opportunity cost, meaning of opportunity cost under theory of cost

meaning of opportunity cost under theory of cost

Dependence on agricultural production, Dependence on agricultural productio...

Dependence on agricultural production: Dependence on agricultural production and primary product for exports. The external sector comprises Imports and Exports, Ghana shows de

Growth of production, GROWTH OF PRODUCTION: The performance of Indian ...

GROWTH OF PRODUCTION: The performance of Indian agriculture during more than half a century of planned economic development can be broadly characterised by three distinct phas

Statistics, please can you explainn what "down 0.1 percentage point on the ...

please can you explainn what "down 0.1 percentage point on the quarter means"?

Illustrate the features of a perfectly competitive firm, Question 1: (a...

Question 1: (a) Clearly illustrate the features of a perfectly competitive firm. (b) How would the same industry change if it were organized first as a competitive industr

Production function, Your firms production function : Q=4K^1/2L^1/2 Suppos...

Your firms production function : Q=4K^1/2L^1/2 Suppose that the price of labor is $5 and the price of capital is $20. Your firm desires to produce 200 units of output. How much

Marginal utility., marginal utility is applied on money or not

marginal utility is applied on money or not

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