Potential GDP measures the capacity of the economy in terms of the actual goods and services to be produced.

Name: Potential GDP measures the capacity of the economy in terms of the actual goods and services to be produced.
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Potential GDP represents the maximum level of output that an economy can produce with its available resources such as labor, capital, and technology. It is a measure of the economy's capacity to produce goods and services, regardless of the current level of actual output.

Potential GDP Measures the Capacity of the Economy in Terms