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- Potential_output abstract "In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real gross domestic product (output) that can be sustained over the long term. The existence of a limit is due to natural and institutional constraints. If actual GDP rises and stays above potential output, then (in the absence of wage and price controls) inflation tends to increase as demand for factors of production exceeds supply. This is because of the limited supply of workers and their time, capital equipment, and natural resources, along with the limits of our technology and our management skills. Graphically, the expansion of output beyond the natural limit can be seen as a shift of production volume above the optimum quantity on the average cost curve. Likewise, if GDP is below natural GDP, inflation will decelerate as suppliers lower prices to fill their excess production capacity.Potential output in macroeconomics corresponds to one point on the production possibilities frontier (or curve) for a society as a whole seen in introductory economics, reflecting natural, technological, and institutional constraints. Potential output has also been called the "natural gross domestic product." If the economy is at potential, the unemployment rate equals the NAIRU or the "natural rate of unemployment." There is great disagreement among economists as to what these rates actually are. Generally speaking, most central banks and other economic planning agencies attempt to keep GDP at or around the natural GDP level. This can be done in a number of ways: the two most common strategies are expanding or contracting the government budget (fiscal policy), and altering the money supply to change consumption and investment levels (monetary policy).The difference between potential output and actual output is referred to as the output or GDP gap, which may closely track measures of industrial capacity utilization. Potential output has also been studied in relation Okun's law as to percentage changes in output associated with changes in the output gap and over time. and in decomposition of trend and business cycle in the economy relative to the output gap.".
- Potential_output wikiPageID "570406".
- Potential_output wikiPageLength "3312".
- Potential_output wikiPageOutDegree "27".
- Potential_output wikiPageRevisionID "666665040".
- Potential_output wikiPageWikiLink Average_cost.
- Potential_output wikiPageWikiLink Business_cycle.
- Potential_output wikiPageWikiLink Capacity_utilization.
- Potential_output wikiPageWikiLink Category:Macroeconomics.
- Potential_output wikiPageWikiLink Category:Price_controls.
- Potential_output wikiPageWikiLink Central_bank.
- Potential_output wikiPageWikiLink Central_banks.
- Potential_output wikiPageWikiLink Decomposition_of_time_series.
- Potential_output wikiPageWikiLink Demand.
- Potential_output wikiPageWikiLink Economics.
- Potential_output wikiPageWikiLink Factors_of_production.
- Potential_output wikiPageWikiLink Fiscal_policy.
- Potential_output wikiPageWikiLink GDP_gap.
- Potential_output wikiPageWikiLink Gross_domestic_product.
- Potential_output wikiPageWikiLink Inflation.
- Potential_output wikiPageWikiLink Management.
- Potential_output wikiPageWikiLink Monetary_policy.
- Potential_output wikiPageWikiLink Money_supply.
- Potential_output wikiPageWikiLink NAIRU.
- Potential_output wikiPageWikiLink Natural_gross_domestic_product.
- Potential_output wikiPageWikiLink Natural_rate_of_unemployment.
- Potential_output wikiPageWikiLink Okuns_law.
- Potential_output wikiPageWikiLink Output_gap.
- Potential_output wikiPageWikiLink Potential_output.
- Potential_output wikiPageWikiLink Price_controls.
- Potential_output wikiPageWikiLink Production_possibilities_frontier.
- Potential_output wikiPageWikiLink Production–possibility_frontier.
- Potential_output wikiPageWikiLink Real_versus_nominal_value_(economics).
- Potential_output wikiPageWikiLink Real_vs._nominal_in_economics.
- Potential_output wikiPageWikiLink Supply_and_demand.
- Potential_output wikiPageWikiLink Technology.
- Potential_output wikiPageWikiLink Unemployment.
- Potential_output wikiPageWikiLinkText "Potential output".
- Potential_output wikiPageWikiLinkText "output capacity".
- Potential_output wikiPageWikiLinkText "output".
- Potential_output wikiPageWikiLinkText "potential growth".
- Potential_output wikiPageWikiLinkText "potential output".
- Potential_output wikiPageWikiLinkText "potential total output".
- Potential_output wikiPageWikiLinkText "“natural” level of output".
- Potential_output hasPhotoCollection Potential_output.
- Potential_output wikiPageUsesTemplate Template:Macroeconomics-stub.
- Potential_output wikiPageUsesTemplate Template:Refimprove.
- Potential_output wikiPageUsesTemplate Template:Reflist.
- Potential_output subject Category:Macroeconomics.
- Potential_output subject Category:Price_controls.
- Potential_output type Article.
- Potential_output type Article.
- Potential_output comment "In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real gross domestic product (output) that can be sustained over the long term. The existence of a limit is due to natural and institutional constraints. If actual GDP rises and stays above potential output, then (in the absence of wage and price controls) inflation tends to increase as demand for factors of production exceeds supply.".
- Potential_output label "Potential output".
- Potential_output sameAs إيراد_محتمل.
- Potential_output sameAs Potenciální_produkt.
- Potential_output sameAs Δυνητικό_προϊόν.
- Potential_output sameAs Production_potentielle.
- Potential_output sameAs Prodotto_interno_lordo_potenziale.
- Potential_output sameAs 潜在産出量.
- Potential_output sameAs Produkcja_potencjalna.
- Potential_output sameAs Produto_potencial.
- Potential_output sameAs m.02r49f.
- Potential_output sameAs Q2568237.
- Potential_output sameAs Q2568237.
- Potential_output wasDerivedFrom Potential_output?oldid=666665040.
- Potential_output isPrimaryTopicOf Potential_output.