Does potential economic growth refer to the growth rate when all resources are fully utilized?

Potential economic growth refers to the maximum rate at which an economy can grow when all of its resources—such as labor, capital, and technology—are fully utilized and operating efficiently. This concept is based on the idea that there is a level of output that can be sustained without triggering inflation, assuming optimal use of resources. Therefore, saying that potential economic growth relates to the growth rate at full resource utilization aligns with the definition established in economics.

When all resources are utilized, the economy can produce goods and services at its full capacity. Any additional growth beyond this would typically lead to inflationary pressures rather than sustainable growth, highlighting the importance of balancing resource utilization and economic expansion. This context helps clarify why the accurate portrayal of potential economic growth revolves around optimal resource use rather than suboptimal or underutilized resources.