CHILD DEVELOPMENT PEDAGOGY

Detailed explanation-1: -For an industry, output is a measure of all the goods and services produced in a given time period by businesses in that industry and sold either to consumers or to businesses outside that industry. For example, output can be the number of tons of sugar or boxes of cookies produced in a year by a business or industry.

Detailed explanation-2: -Potential output is the maximum amount of goods and services an economy can turn out when it is most efficient-that is, at full capacity. Often, potential output is referred to as the production capacity of the economy. Just as GDP can rise or fall, the output gap can go in two directions: positive and negative.

Detailed explanation-3: -3. Definition: Potential output is the level of real GDP the economy would produce if all prices, including nominal wages, were fully flexible.

Detailed explanation-4: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.