<p>Potential output and maximum output are often interchangeable and be used in place with each other. Another term is Maximum Potential Output, but the most commonly used is Potential Output. <a href="https://www.google.co.uk/search?ei=tj0XWomSLtCLaruqvqAL&amp;q=maximum+potential+output+economcis&amp;oq=maximum+potential+output+economcis&amp;gs_l=psy-ab.3..33i21k1.66432.71652.0.71722.36.34.1.0.0.0.188.3982.4j27.31.0..2..0...1.1.64.psy-ab..4.32.4002...0j0i67k1j0i131k1j0i131i67k1j0i22i10i30k1j0i22i30k1j33i22i29i30k1.0.wmBah6x6sbg" rel="nofollow noreferrer">This google search</a> shows that all the results on the first page use the term Potential Output instead of Maximum Output.</p>

CC BY-SA 3.0
2017-11-23T21:36:14.703Z
2017-11-23T21:36:14.703Z
Jake Symons
<p>In macroeconomics, what is the difference between potential output and maximum output? Or they are simply equivalent concepts? If they are different, how can we graph it in comparison to LRAS on AD-AS model?</p>

<macroeconomics><economic-growth>
Difference between Maximum Output and Potential Output
F. Max
# Difference between Maximum Output and Potential Output

(Asked by: username_0 on 2017-11-21)

In macroeconomics, what is the difference between potential output and maximum output? Or they are simply equivalent concepts? If they are different, how can we graph it in comparison to LRAS on AD-AS model?

**Tags:** macroeconomics, economic-growth

---

## 1 answers

### Answer by username_1 on 2017-11-23. Score: -1

Potential output and maximum output are often interchangeable and be used in place with each other. Another term is Maximum Potential Output, but the most commonly used is Potential Output. [This google search](https://www.google.co.uk/search?ei=tj0XWomSLtCLaruqvqAL&q=maximum+potential+output+economcis&oq=maximum+potential+output+economcis&gs_l=psy-ab.3..33i21k1.66432.71652.0.71722.36.34.1.0.0.0.188.3982.4j27.31.0..2..0...1.1.64.psy-ab..4.32.4002...0j0i67k1j0i131k1j0i131i67k1j0i22i10i30k1j0i22i30k1j33i22i29i30k1.0.wmBah6x6sbg) shows that all the results on the first page use the term Potential Output instead of Maximum Output.


---

