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Potential output in macroeconomics corresponds to one point on the Production Possibilities Frontier (or curve) for a society as a whole seen in introductory economics, reflecting natural, technological, and institutional contraints.

Potential output has also been called the " Natural Gross Domestic Product ." If the economy is at potential, the Unemployment rate equals the NAIRU or the " Natural Rate Of Unemployment ."

Generally speaking, most central banks and other economic planning agencies attempt to keep GDP at or around natural GDP level. This can be done in a number of ways: the two most common strategies are expanding or contracting the government budget ( Fiscal Policy ), and altering the Money Supply to change consumption and investment levels ( Monetary Policy ).