Economy, asked by muskanhussain5253, 1 year ago

What is meant by inflationary gap? State three measures to reduce this gap.

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Answered by hussain89

A government may choose to use fiscal policy to help reduce an inflationary gap, often through decreasing the number of funds circulating within the economy. ... Asthe amount of money within an economy decreases, the overall demand for goods and services also declines.

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