xBookUtils.terms['fn_12_1'] = "Despite what the label might imply, potential output is not the economy’s maximum level of output; rather, it is equal to the level of real output the economy would produce when all the factors of production (both inputs and technology) are effectively and fully utilized. Other names for this include the natural rate level of output (YNR), the full employment level of output (YFE), or simply the long-run equilibrium level of output (YLR*). These names all make sense and are equivalent, since in the longer term all prices become perfectly or fully flexible, which allows the economy to naturally tend toward a long-run equilibrium state in which all factors are fully utilized.";
xBookUtils.terms['fn_12_2'] = "The PBO defines potential GDP as “the amount of output that an economy can produce when its capital, labour, and technology are at their respective (long-run) trends.”";
xBookUtils.terms['fn_12_3'] = "The increasing use of the Internet and other information technologies can also shift the LRAS curve. The effect of this productivity growth will be discussed in the next section.";