Economics A-Level
Potential output
What Potential output means in Economics A-Level, as defined for AQA.
Definition of Potential output
Check what you remember
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Reference: AQA
The maximum productive capacity of the economy, which increases when behavioural changes shift the long-run aggregate supply curve rightwards.
Topics that use Potential output
- Supply-side policies (AQA A-Level)
Related terms
- Capital investment
- Economic incentives
- Free market supply-side policies
- Human capital
- Incentives
- Innovation
- International competitiveness
- Interventionist policies
Using Potential output in the exam
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