A country’s potential gross domestic product versus its actual, realized gross measured over a specified time period . Actual GDP is perennially less than Potential GDP. This difference is stated as a measure of wasted potential output . The blame for the waste is typically put on a country’s unemployment rate , tied to business and government inefficiencies. Actual GDP is a country’s time-bound measure of its output. Potential GDP is an ideal, zero unemployment , product price stability , strong currency, and maximum production.
Black’s Law Online Dictionary
