CBSE Class 12-commerce Answered
Inflationary gap
Asked by Sharmashivangi2180 | 10 Feb, 2019, 09:18: PM
Expert Answer
Excess demand occurs in a situation when aggregate demand is more than aggregate supply corresponding to full employment. It leads to reduction in inventories and inflation in the economy. This situation is considered an inflationary gap.
Answered by Tharageswari S | 11 Feb, 2019, 09:12: AM
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