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Potential real GDP

Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 exam•Written by the Fiveable Content Team • Last updated August 2025

Definition

The maximum level of real output an economy can produce at full employment with existing resources, technology, and institutions; increases with capital formation and technological progress.

AP course connection

Topic 3.4: 3.4 Long-Run Aggregate Supply (LRAS)

Unit 3

Keep studying

Review this concept in 3.4 Long-Run Aggregate Supply (LRAS)AP Macroeconomics course hub

Potential real GDP cheat sheet for homework

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