What are the monetary policy to correct inflationary gap
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Explanation:
Policies that can reduce an inflationary gap include reductions in government spending, tax increases, bond and securities issues, interest rate increases, and transfer payment reductions.
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ᵖᵒˡⁱᶜⁱᵉˢ ᵗʰᵃᵗ ᶜᵃⁿ ʳᵉᵈᵘᶜᵉ ᵃⁿ ⁱⁿᶠˡᵃᵗⁱᵒⁿᵃʳʸ ᵍᵃᵖ ⁱⁿᶜˡᵘᵈᵉ ʳᵉᵈᵘᶜᵗⁱᵒⁿˢ ⁱⁿ ᵍᵒᵛᵉʳⁿᵐᵉⁿᵗ ˢᵖᵉⁿᵈⁱⁿᵍ, ᵗᵃˣ ⁱⁿᶜʳᵉᵃˢᵉˢ, ᵇᵒⁿᵈ ᵃⁿᵈ ˢᵉᶜᵘʳⁱᵗⁱᵉˢ ⁱˢˢᵘᵉˢ, ⁱⁿᵗᵉʳᵉˢᵗ ʳᵃᵗᵉ ⁱⁿᶜʳᵉᵃˢᵉˢ, ᵃⁿᵈ ᵗʳᵃⁿˢᶠᵉʳ ᵖᵃʸᵐᵉⁿᵗ ʳᵉᵈᵘᶜᵗⁱᵒⁿˢ.
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