Real output (Y)

Definition

Real output refers to the total quantity or volume of goods and services produced by an economy during a specific period after adjusting for changes in prices due to inflation or deflation.

Related terms

Gross Domestic Product (GDP): The total value of all final goods and services produced within a country's borders during a specific time period.

Potential output: The maximum level of real output an economy can sustainably produce over time without causing inflation.

Business cycle: The fluctuation in economic activity that occurs over time, consisting of periods of expansion (increased real output) and contraction (decreased real output).