-Refer to Figure 13.3. The diagram shows that a benefit of an increase in potential output is to permit higher output without experiencing:

Name: -Refer to Figure 13.3. The diagram shows that a benefit of an increase in potential output is to permit higher output without experiencing:
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An increase in potential output allows the economy to produce more without causing inflation to rise, as it does not put upward pressure on prices by exceeding the productive capacity of the economy.