Final answer:
Potential GDP is the level of output an economy can achieve when fully employing all resources, and it is higher than the current real GDP when the economy is operating below the natural rate of unemployment.
Step-by-step explanation:
Understanding the value of a country's potential GDP (Long-Run Aggregate Supply or LAS) is essential in evaluating its economic health in the long run. Potential GDP represents the level of output an economy can produce when all resources are fully employed, which correlates with full employment conditions and the natural rate of unemployment. In the context of the question, where the real GDP is stated as 600 billion dollars and the current unemployment rate is above the natural unemployment rate (7% vs 4%), the economy is below its full employment level.
The value of the country's potential GDP, therefore, would be higher than the current real GDP if it were operating at the natural rate of unemployment. To calculate the precise value, one would typically use an economic model or data-specific to the country in question, which accounts for factors such as productivity, labor force participation, and technological advancement.