But the economy is already running at or near its productive capacity.
Just because the government is shifting taxes around doesn't mean that the productive capacity of the economy has changed.
Technology: the productive capacity of the agents in the economy must be specified.
In other words, public policy might affect short-term performance but cannot increase productive capacity.
We live in an age where productive capacity is so great that no one need ever starve.
For, up to a point, consumption is investment in personal productive capacity.
All of these will increase productive capacity and thus reduce the structural deficit.
The increase in productive capacity of an economy is called economic growth.
Their productive capacity is an increasingly important factor for economic growth and must be considered as such.
An improved health increases the productive capacity of the population.