Thursday, January 27, 2011

Actual vs Potential GDP Graph---We need to consume us some GDP---FAST!

A close up view of the difference between the US's ACTUAL GDP and its POTENTIAL to produce GDP.  The line below the Potential GDP would represent the dollar figure for a point inside the Production Possibilities Frontier, such as Point "A".  The PPF just shows the raw production numbers of Capital and Consumer Goods.  We have a lot of ground to make up!

Source: Econbrowser


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