1
$\begingroup$

In macroeconomics, what is the difference between potential output and maximum output? Or they are simply equivalent concepts? If they are different, how can we graph it in comparison to LRAS on AD-AS model?

$\endgroup$
-1
$\begingroup$

Potential output and maximum output are often interchangeable and be used in place with each other. Another term is Maximum Potential Output, but the most commonly used is Potential Output. This google search shows that all the results on the first page use the term Potential Output instead of Maximum Output.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.