Question

The difference by which actual Aggregate Demand exceeds the Aggregate
Demand required to establish full employment equilibrium is known
(inflationary gap/deflationary gap).
1
(choose the correct alternative)
​

Answer 1

Answer:

When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand. Answer: When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand and the gap is called inflationary gap

Answer 2

Answer:

see the below answer

Explanation:

Answer: When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand. Answer: When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand and the gap is called inflationary gap

MARK AS that every one says!