Question

Explain the concept of Inflationary Gap?​

Answer 1

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An inflationary gap is a macroeconomic concept that describes the difference between the current level of real gross domestic product (GDP) and the anticipated GDP that would be experienced if an economy is at full employment. This is also referred to as the potential GDP.
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Answer 2

hey!!

°•☆Your answer:-☆•°

• The Inflationary Gap is the amount by which the aggregate demand exceeds aggregate supply at the full employment level. It is called inflationary because it leads to rise in price level.

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