This will raise actual output to the level of potential output, thereby closing the output gap.

Potential output has also been called the natural gross domestic product.

If actual output is below potential output, this means that total spending is insufficient to buy what the economy can produce.

In economics, potential output (also referred to as natural gross domestic product ) refers to the highest level of real Gross Domestic Product output that can be sustained over the long term.

That growth of the labor force will raise potential GDP by only about 0.5 per year.

But China s GDP growth has already started to fall towards its potential level, which, according to the consensus view, is around 9 .

Finally, the change in potential GDP will depend on what happens to the rate of change of multifactor productivity that is, the change in output that results from changes in technology and production processes.

The theory behind the massive economic stimulus efforts that many governments have undertaken rests on the notion of the output gap. This is the difference between an economy s actual output and its potential output.

It is not out of line with other American yardsticks since the output trough, real GDP has grown at an average rate of 2.86 year, barely above the rate of growth of the US economy s productive potential.

Today, even if US production returns to its stable inflation output potential by 2017 a huge if the US will have incurred an output shortfall equivalent to 60 of a year s GDP.

At 40 a barrel, expect oil prices to slow the long run growth rate of the world's potential output by 0.1 per year.

And it's not just that it yields a different kind of product at the end, it's that potentially it changes the way that we relate to each other.

Because services account for 70 of European GDP, the potential impact from enhanced competition is substantial.

What the minister intends to say is serious, because if attacks happen outside Bogotá, the potential GNP decreases more than proportionately to the real GNP, which means that the gross national product figures he can show are, according to this measurement, more significant.

If the trade deficit is reduced by 3 of GDP between now and the end of the decade, the implied rise in exports and decline in imports would reduce output available for US consumption and investment by about 0.3 per year.

This fall in GDP, though a natural consequence of lower imports of consumption goods, is often mistakenly perceived as something to be avoided, because it seems to imply that output is below its potential.

The dominant mode of thought within the Federal Reserve with which I agree appears to be that the information technology revolution is continuing, that the pace of growth of potential output in the US remains very fast, and that the output gap is thus relatively wide.

The growth of potential GDP will reflect the structural rise of the labor force, the increase in the capital stock, and the improvement in multifactor productivity (i.e., the change in the output that results from improvements in technology rather than from increases in labor and capital.)

Brazil s GDP grew by only 1 last year, and may not grow by more than 2 this year, with its potential growth barely above 3 .

Reputable forecasters both private and public have been revising down their estimates of America s potential long run GDP.

According to a European Commission estimate, Latvian GDP was almost 14 above potential at the peak of the boom, then fell to 10 below potential when the boom went bust. The recovery, however, was equally rapid, with GDP now back to potential (albeit below the unsustainable peak of the boom).

This could be addressed promptly while eliminating inefficiencies and re orienting institutions that were co opted by the old system to serve the few rather than the many would increase potential output significantly.

The US is adjusting structurally and generating real (inflation adjusted) GDP growth (though well below its potential annual rate of 3 3.5 ).

For actual GDP, such frequent and large forecast revisions are inevitable. Potential GDP, however, is supposed to be more stable, as it does not depend on demand side developments.

The study by the Secretariat employs a system of categorization and identifies treaties exhibiting a very high likelihood of applicability , treaties exhibiting a moderately high likelihood of applicability , treaties exhibiting a varied or emerging likelihood of applicability , and treaties exhibiting a low likelihood of applicability .

Possible papers

The rise of GDP over the next ten years will reflect the very positive effect of the eventual recovery from the current deep downturn, combined with a below trend rise in the economy s potential output at full employment.

But other researchers have proposed a number of plausible mechanisms, primarily related to paracetamol s negative effect on the body s ability to withstand oxidant stress and its potential enhancement of the allergic immune response.

There's a possibility of war.

He is likely to arrive soon.

Sami is probably right.

They are not terrified of the prospect of intervention.

That seems unlikely.

Indeed, despite its shortcomings, India s GDP will probably grow by 5 5.5 this year not great, but certainly not bad for what is likely to be a low point in economic performance.

Its management got changed and probably it will be shutdown too.

My mom must be worried.

I've probably got an ulcer.

Sami was probably dying.

Possible action by the Conference of the Parties

Treaties exhibiting a very high likelihood of applicability

Treaties exhibiting a moderately high likelihood of applicability

Treaties exhibiting a low likelihood of applicability

This new round of central bank activism reflects persistent concerns about economic growth. Despite a once unthinkable amount of monetary stimulus, global output remains well below potential, with the potential itself at risk of being suppressed.

Layla is probably dead.

Sami probably did it.