The maximum quantity of real GDP that can be produced while avoiding shortages of labour, capital, land, and entrepreneurial ability that would bring rising inflation is

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Potential GDP is the maximum quantity of real GDP that can be produced while avoiding shortages of labour, capital, land, and entrepreneurial ability that would bring rising inflation. It represents the economy's production capacity in the long-run when all resources are utilized efficiently. Real GDP, on the other hand, is the actual production of goods and services in an economy and can be lower than potential GDP if resources are not being utilized efficiently. Nominal GDP is the value of output measured in current market prices, while productive GDP and actual GDP are not commonly used terms in economics.

The Maximum Quantity of Real GDP That Can Be Produced