Potential Output: Potential output represents an economy's maximum sustainable production level under normal conditions with full utilization of resources. It serves as a benchmark for measuring economic performance.
Factors of Production: Factors of production are the resources used in producing goods and services: land/natural resources, labor/workers, capital/machinery/buildings, and entrepreneurship. These factors contribute to an economy's output.
Economic Growth: Economic growth refers to the increase in a country's production of goods and services over time. It is measured by changes in gross domestic product (GDP) and reflects improvements in living standards.