Policy makers talk about the “capacity” of the economy to grow. What specifically is meant by the “capacity” of the econ

[answerhappygod]

Policy makers talk about the “capacity” of the economy to grow.
What specifically is meant by the “capacity” of the economy? How
might capacity be measured? In what ways is capacity limited by
labor constraints and by capital constraints? What are the
consequences if demand in the economy exceeds capacity? What signs
would you look for?