Respuesta :

Potential output is not purely a physical measure based on the number of workers and existing factories because factories may be technologically obsolete.

What is potential output?

Potential output of an economy is used to determine the amount of goods and services that is produced when people are gainfully employed.

It does not consider unemployment everyone is assumed to be working.

Therefore, Factories may not function again and cannot be called potential output.

Learn more on output below,

https://brainly.com/question/22783373

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