U.S. Potential GDP is the value of the goods and services produced in the united states when the U.S. economy is at full employment.
Potential Gross domestic product (GDP) is the amount of output that a country's economy is capable of producing at a given inflation rate. On the other side, increasing inflation may temporarily cause an economy to produce more than it could. When measuring the output gap, one must take into account the capital stock, the potential labor force based on demographics .
Potential output, total output at capacity, long-run output, or production at full employment are further terms for potential GDP. An key measure is the potential production. It is helpful for calculating the amount of goods and services an economy can create.
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