Question

What is the difference between the actual output and generated output known as?

Output difference
Accuracy
Output Modulus
Cost

Answer 1

The difference between the actual output and generated output known as:-

Output difference

The economic measure of the difference between the actual output of an economy and its potential output is known as the output difference. It is the maximum amount of goods and services an economy can turn out when it has a full capacity. It is also known as production capacity of the economy.

Answer 2

The difference in the Generated and potential output is termed to be output gap.

The generated output gives the total number of services and goods produced in an economy and it is also known as actual GDP of the country.

Whereas on the other , potential output is difference from this. Potential output is the production of services and goods when all the country’s resources are used or in simple words when the recourses are used at the full capacity.

Usually, it can be known to be production "capacity of the economy".¬

When the actual output is more than potential, it is known as positive output Gap or vice versa