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

Consumption of services and goods, Services and goods that are used for the...

Services and goods that are used for their ultimate end purpose, meeting some human desire orneed. Consumption may include private consumption (by individuals, financed from their

Law of mass action, Law of mass action states that at a constant temperatur...

Law of mass action states that at a constant temperature rate of a chemical reaction is directly proportional to product of active masses of the reactants raised to the power equal

Inflation-unemployment trade-off under adaptive expectations, Inflation-Une...

Inflation-Unemployment Trade-off under Adaptive Expectations : By the late 1960s, the inverse relation between inflation and unemployment as suggested by the Phillips curve was

Factors that make this demand less elastic, Question 1: The price of the go...

Question 1: The price of the good X rises from $1.30 to $1.40. Calculate the price elasticity of demand by using the mid-point method. Question 2: How do you explain the answer

Political economy, what is the significance of the Loucas critique in polit...

what is the significance of the Loucas critique in political economy?

Summary of education and economic development, Normal 0 false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Production theory and analysis in managerial economi, dicuss the relevance ...

dicuss the relevance of studing production theory and analysis inn your career as a student of manegerial economics

Austrian economics, Austrian economics is a brand of neo-classical economic...

Austrian economics is a brand of neo-classical economics that was established in Vienna during the late 19th century & first half of the 20th century. Austrian economics was strong

Hw, hi, how much does it cost for you guys to write a 5-6 pages on a articl...

hi, how much does it cost for you guys to write a 5-6 pages on a article on supply and demand? However, on the 5-6 pages it wont all be writings..i need a few graphs. i would need

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