Difference between Actual and Potential GDP?

Answer

First, GDP stands for Gross Domestic Product. Potential GDP is the value of production that can occur when all factors are optimal. Actual GDP is the actual value as reflected in true economic conditions.
Q&A Related to "Difference between Actual and Potential GDP?"
Actual GDP is the sum of the value added by all the economic activities in an economy. But Actual GDP may be lower the potential GDP that is equal to the maximum sum of value of added
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Potential GDP is the highest level of Real GDP that could persist for a substantial period with raising the rate of inflation. In other words, it is the real value of the services
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The GDP gap or the output gap is the difference between potential GDP and actual GDP or actual output. report this answer. Updated on Wednesday, February 01 2012 at 03:32PM EST. Source
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Potential is the total gross domestic product that an
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