Question 29
MediumOriginal questionFull-employment output is ₹1,000 crore and aggregate demand at that output is ₹900 crore. The deflationary gap is
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Gap = full-employment output − AD = 1,000 − 900 = ₹100 crore.
- Concept
- Size of the deflationary gap
- Typical timeTypical
- 70 s
- Your timeYours
- —
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