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

., what total cost function yields a U-shaped average total cost function

what total cost function yields a U-shaped average total cost function

Current daily status(cds), Current Daily Status(CDS): The reference pe...

Current Daily Status(CDS): The reference periods (i.e. a year, a week and a day) are basically used to describe the period for which the workers are employed in the economy. T

Determine the rule of divergence in general, Determine The Rule of Divergen...

Determine The Rule of Divergence in General Though even if attention is confined to non-communist-ruled economies there still has been huge divergence in relative output per w

Optimal Production Quantity, Wholemark is an Internet order business that s...

Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.50 per card, and the cos

What simplifying assumption does macroeconomic model make, What simplifying...

What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)?  The simplifying assumptions are:  1) The household and i

Forms of globalization, Globalization: A generalized historical process by ...

Globalization: A generalized historical process by which more economic activity occurs across national borders. Forms of globalization include international trade (imports and expo

A period of transition and improvement, A Period of Transition and Improvem...

A Period of Transition and Improvement: These few years stand out as the golden years for India's BOP. India had a small current account surplus (0.6 per cent of the GDP on an

Distributive bargaining, Distributive Bargaining An approach to negoti...

Distributive Bargaining An approach to negotiation that finds to divide up a fixed amount of resources.

Cost-of-living indexes, COST-OF-LIVING INDEXES   * The CPI is computed e...

COST-OF-LIVING INDEXES   * The CPI is computed each year as the ratio of cost of a typical group of consumer goods and services today in comparison to the cost during a base per

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