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One method of estimating the potential output is to calculate changes in the production function . In this methoda mathematical equation is used tocalculate output

One method of estimating the potential output is to calculate changes in theproduction function. In this methoda mathematical equation is used tocalculate output based on an economy's inputs, such as labor and capital.

What is the production function and its connection to labor and capital?

How are changes in this production function relevant to estimating potential output?

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