In a pure market economy,
A. there is no role for government.
B. government intervention might be needed.
C. large markets where people meet to buy and sell are required.
D. all of these answer options are correct.
Ans: government intervention might be needed.
Explanation:
In a pure market economy, equilibrium occurs when Aggregate Demand is equal to Aggregate Supply. when any dis-equilibrium occurs, government intervenes market inequities through regulation, taxation, and subsidies.
Thus, option [B] is correct answer.
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