Figure 1a: Potential and Actual Real GDP, 1960-2001
9,000. The orange line shows full-employment or potential output. 8,000. 7,000. Actual and Potential Real GDP (Billions of 1996 Dollars). 6,000. The green line shows actual output. During recessions, output declines. 5,000. 4,000. During expansions, output rises—sometimes rapidly.
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