What is the annual percentage increase in national output that fluctuates with the trade cycle?

The annual percentage increase in national output that fluctuates with the trade cycle is referred to as actual economic growth. This metric reflects the real performance of an economy over time, taking into account varying levels of economic activity and production. It measures the year-on-year changes in the Gross Domestic Product (GDP) as it reacts to the economic conditions such as expansion and contraction phases within the trade cycle.

During periods of economic upturns, actual economic growth tends to increase, while it may decline during recessions, leading to variability. This contrast is important because it illustrates how economies can experience fluctuations based on factors like consumer demand, investment levels, and external economic impacts.

Potential economic growth, on the other hand, represents the maximum output an economy can achieve when operating at full capacity without generating inflation. While GDP measures the total value of goods and services produced, identifying actual economic growth specifically addresses the changes over time and reflects the state of the economy in real terms. Human capital relates to the skills and knowledge of the workforce rather than the growth of economic output directly.