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2.5.2 Output gaps
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Actual and potential output

Actual and potential output

Potential output is the sustainable level of real GDP that an economy can produce when its resources are normally employed. The long-term trend growth rate is the average rate at which this productive capacity rises over time.

2.5.2 Output gaps Lesson

  1. A Level
  2. /Economics
  3. /2.5.2 Output gaps

Step-by-step lessons covering Edexcel A A Level Economics 2.5.2 Output gaps for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.