Gross national product at full employment

Extract: This article proposes a general equilibrium approach to measuring the gross national product of the U.S. economy when its resources are fully employed. Estimates of potential GNP given by a quadratic input-output model of the Nation's economy were compared with those advanced by Okun and others. The estimates developed in this study were shown to do a better job of explaining the inflation which existed during the period of study than the previous studies.