Question

Explain the concept of Deflationary Gap?
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Answer 1

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☆•°Answer:-•°☆

• Deflationary Gap is the amount by which the aggregate demand falls short of aggregate supply at the full employment level. It is called deflationary because it leads to a fall in price level.

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Answer 2

Explain a concept of deflationary gap with the help of a diagram or Draw a diagram to showing a Deflationary gap. When aggregate demand is less than the level of output at full employment , then the deficiency or gap is called Deflationary gap

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