Question

actual and potential gdp explain!.

please muje Assaiment mai note banana hain​

Answer 1

Answer:

To do this , policy makers need to know how much the economy is producing. And they need to have an idea about how much the economy could produce; if it were working at its full potential . That’s called POTENTIAL GDP .

So what is your potential?

How does the gross product of you compare to potential gross product of you?

Figuring out your potential is tricky. So let’s set a few ground rules.

First, your potential is not the maximum you could produce. After all you will need some time to rest . So let’s not include the stuff you could produce on your time off.If you didn’t bake a pancake because you were enjoying a ball game,we won’t count that. So if you did not bake cupcakes because the oven is broken, we won’t count that in your potential.