Potential GDP, also known as full-employment GDP, is the greatest amount that an economy can create when all of its physical capital, human capital, technological resources, and institutional resources are utilized to their full potential.
The amount of output that a country's economy is capable of producing at a constant rate of inflation is known as the potential gross domestic product (GDP) and is specified in the OECD's Economic Outlook publication.
Potential labor force growth (the number of persons who desire to be employed when the labor market is robust) and potential labor productivity growth are the two factors that influence potential GDP growth.
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