Daily Archives: December 8, 2017

TrumpEconomy:”U.S. Economy Reaches Its Potential Output for First Time in Decade!”

 WASHINGTON—The U.S. economy is running at its full potential for the first time in a decade, a new milestone for an expansion now in its ninth year.

Total economic output in the third quarter was slightly above the maximum sustainable level of output as estimated by the nonpartisan Congressional Budget Office.

This is a measure of the economy’s potential to produce goods and services based on the supply of people working and how productive they are. In downturns actual output drops below potential and slows inflation. In advanced stages of expansions output can exceed potential and cause the economy to overheat.

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