What is the term for the economy's output when all resources are fully employed?

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Think of the economy’s output when all resources are fully employed as the longest-run, sustainable level of production. This is potential GDP—the amount the economy can produce when labor, capital, and technology are used at normal, full-employment levels. It isn’t swayed by upswings or downturns in the business cycle; it reflects the capacity of the economy. Real GDP measures what is actually produced in a period, adjusted for inflation, so it can be higher or lower than potential GDP depending on whether the economy is overheating or underperforming. Nominal GDP uses current prices, so changes in the price level affect it directly and it doesn’t distinguish between more production and higher prices. GDP covers total output but doesn’t specify whether resources are fully utilized. So the term for output when resources are fully employed is potential GDP.