why output gap is present in Keynesian theory
Answers
Answered by
2
Answer:
The “Output Gap”
There is a negative output gap whenever potential GDP exceeds actual GDP. ... On the other hand, inflation arises – according both the Neo-Keynesian theory and the Modern Monetar Theory (MMT) – when interest rates are too low and actual GDP temporarily outstrips the long-run potential or trajectory of GDP.
Answered by
0
Answer:
The “Output Gap”
There is a negative output gap whenever potential GDP exceeds actual GDP. ... On the other hand, inflation arises – according both the Neo-Keynesian theory and the Modern Monetar Theory (MMT) – when interest rates are too low and actual GDP temporarily outstrips the long-run potential or trajectory of GDP.
Explanation:
MARK AS BRAINLIST
Similar questions