Differentiate between actual and potential output, Macroeconomics

Assignment Help:

Differentiate between Actual and Potential output. 

Actual output is that level which economy in fact produces. In contrast, potential output is the aggregate capacity output of a nation; the maximum amount of goods and services that can be produced with available resources and a given state of technology. 

 


Related Discussions:- Differentiate between actual and potential output

Difference between Quantitative Easing and Monetary Policy, Why is quantita...

Why is quantitative easing used during liquidity trap when it lowers interest rates too?

Tax credit, Suppose that an investment tax credit is stated to be temporary...

Suppose that an investment tax credit is stated to be temporary in nature, and the credit will be 10% on newly acquired capital (investment) equipment and will last just one year o

Monetary policy, what is the importance of credit multiplier

what is the importance of credit multiplier

International trade, how to maintain equilibrium gdp in foreign trade

how to maintain equilibrium gdp in foreign trade

At some number payment is fixed, The United States Treasury borrows money ...

The United States Treasury borrows money on behalf of the federal government all the time. One type of the government borrowing, called a treasury bills, promises a fixed payment a

Classical labour market, using a classical labour market , illustrate the e...

using a classical labour market , illustrate the effects of a real wage existing in the market that is lower than the equilibrium real wage. what will eventually happen in this lab

Aggregate demand in the is-lm model, Q. Aggregate demand in the IS-LM model...

Q. Aggregate demand in the IS-LM model? Aggregate demand Aggregate demand depends on Y and R in the IS-LM model As investments depend on R

Credit multiplier, how can the central bank influence the size of the multi...

how can the central bank influence the size of the multiplier

Effect of a wage increase, Describe the differences between the substitutio...

Describe the differences between the substitution effect of a wage increase and the income effect of a wage increase.

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