Which of the following indicates that the economy is working on its full potential? |
Actual output = Potential output Actual output < Potential output Actual output > Potential output None of the above |
Actual output = Potential output |
Economy works on its full potential when the actual output is equal to the potential output. If the actual output is less, we can conclude that the economy is not utilising its resources to its maximum potential. That means there is underutilization of resources. |