Glossary · Macro · Aggregate demand and supply
Potential output
The real GDP an economy produces when every worker who wants a job at the going wage has one and factories run at normal capacity. It is the trend the business cycle rides on, and it is where long-run aggregate supply stands.
Also called: full-employment output, natural level of output
Related terms
More from aggregate demand and supply
Definitions are the start
See the term used, not just defined.
The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.