Economics A-Level
Normal capacity level of output
What Normal capacity level of output means in Economics A-Level, as defined for AQA.
Definition of Normal capacity level of output
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Reference: AQA
The maximum sustainable output when all resources are fully employed, allowing for frictional and structural unemployment.
Topics that use Normal capacity level of output
- Determinants of long-run aggregate supply (AQA A-Level)
Related terms
- Banking system
- Capital accumulation
- Classical long-run aggregate supply (LRAS) curve
- Demand management
- Economic growth
- Institutional structure
- Macroeconomic equilibrium
- Productivity
Using Normal capacity level of output in the exam
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