Apr 24 2012

Potential output

Published by at 9:00 pm under

How much a nation can produce if all of its resources (land, labor and capital) are operating at their full capacity and at full efficiency. Contrasts with full employment output, which a nation achieves when most of its resources are employed towards production, but there exist some degree of unemployment (the natural rate of unemployment).

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

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