If markets work well
A) the actual output level in the economy will be less than the economy's potential output level.
B) the actual output level in the economy will be equal to the economy's potential output level.
C) the actual output level in the economy will be greater than the economy's potential output level.
D) the actual employment level in the economy will equal the population of the economy.

Question

Quizplus · Accepted Answer

When markets work well, resources are allocated efficiently, leading to the actual output level in the economy being equal to the economy's potential output level. This is because all resources are being used in the most efficient way possible, maximizing production and economic welfare.

If Markets Work Well